Finova Capital may raise around Rs 260 Cr of funding

As per news source, Finova Capital, a Jaipur based Non-Banking Financial Company (NBFC), is raising around Rs 260 Cr from existing investors Sequoia Capital India (SCI) Growth Investments and Faering Capital.

The filing with the Ministry of Corporate Affairs (MCA) which has been accessed by the news source reveals that the company has received the approval from its Board of Directors to allot 10 equity shares at a face value of Rs 10 per share and a premium of Rs 732.81 per share and 29,18,637 Series C Cumulative Compulsorily Convertible Preference Shares (CCCPS) at a face value of Rs 100 per share and a premium of Rs 642.81 per share to SCI Growth Investments III, aggregating to a total amount of Rs 216.8 Cr.

The company has also received approval to allot 5,81,575 Series C CCCPS to two separate investment funds operated by Mumbai-based private equity firm Faering Capital India, aggregating to a total amount of around INR 43.19 Cr.

From its founders, Mohit and Sunit Sahney, the company is also raising funds of around Rs 9.74 Cr

A NBFC licensed by the Reserve Bank of India (RBI), Finova provides loans to those in the financially excluded and unorganised MSME sector. The company provides loans to both urban and rural poor to meet their productive requirements in starting a new business or for growing an existing business.

Faering Capital was the lead investor in Finova’s $15 Mn (INR 109.96 Cr) worth Series B round of funding last year, in which Sequoia Capital India also participated. In 2018, Finova raised $6 Mn (INR 43.98 Cr) from Sequoia Capital India.