The Non-banking Financial company based in Jaipur, Finova Capital (1), raises about 260 Crore INR from its existing investors. It includes Sequoia Capital India, SCI, Growth Investments, and Faering Capital.
According to the sources, the company has received its Board of Directors’ approval to allot ten equity shares at face value of 10 INR per share with a premium of 732.81 INR per share. Moreover, it would give Series ̧, CCCPS, Cumulative Compulsorily Convertible Preference Shares at the value of 100 INR per share, and a 642.81 INR premium per share SCI Growth Investments. It would aggregate the total amount of 216.8 Crore INR.
The firm has also received the approval to allot 5,81,575 CCCPS of Series C in two separate investment funds of Faering Capital India, a Mumbai-based private equity firm. It would aggregate the total amount to 43.19 Crore INR in the round.
Finova Capital is also securing 9.74 Crore INR from its founders Mohit and Sunit Sahney.
Finova Capital to Offer Loans to MSME Sector to Start a New Business or Growing the Existing Business
Mohit Sahney founded Finova Capital, a Reserve Bank of India, RBI, licensed NBFC. It offers loans to people in the financially excluded and unorganized MSME sector. Moreover, it gives loans to both urban and rural people to meet their productive requirements to start a new business or boost their existing business.
Notably, Faering Capital was the lead investor in the Series B funding round of Finova Capital last year. It was worth about 15 million USD or 109.96 crore INR. Sequoia Capital India also participated in that finance round, where Finova secured 6 million USD or approximately 43.98 crore INR.
Furthermore, Sequoia Capital has also invested in several fintech startups such as Mobikwik, Citrus Payment, payment gateways, MoneyTap and Capital Float, consumer lending startups Pine Labs, a point of the sales machine manufacturer.