Finova Capital is an NBFC (Non-Banking Financial Institution) licensed by the Reserve Bank of India (RBI). The main idea of the business is to focus on microentrepreneurs and small geographies/loans. Finova wants to reach out to all those financially excluded unreached, unorganized MSME sectors. Their main aim is to make finance available at a reasonable cost & deliver transparently. It is a young, growing company with a big and passionate vision. So, let us have a look at the success story of this fintech company.
Finova Capital – Key Points
- Startup Name – Finova Capital
- Starting Date – June 28, 2017
- Founders – Mohit Sahney, Sunita Sahney
- Headquarters – Jaipur, Rajasthan, India
- Company Type – Private
- Sector – Fintech
- No. of employees – 300-400
- Estimated Annual Revenue - $5 M
- Website – www.finova.in
Finova Capital – Founders
- Mohit Sahney – Mohit Sahney is the founder, Managing Director, & CEO of Finova Capital. He is a graduate in civil engineering from MBM Engineering College, JNV University Jodhpur and completed his MBA from FMS, MDS University Ajmer. He is also served as the Joint General Manager of ICICI Bank (one of the largest banks in India).
- Sunita Sahney – Sunita Sahney is the founder and director of the company. She is a graduate in Production & Industrial Engineering from MBM Engineering College, JNV University, Jodhpur and a complted MBA from FMS, MDS University, Ajmer. She was a topper at MDS University and worked with Tata Teleservices and Shyam Telelink in various leadership positions.
Finova Capital – Brand Name, Logo, and Tagline
- Brand Name – Since, Finova is a fintech company, its brand name is also related to finance and capital. The brand name is suitable for this industry and it easily signifies the purpose of the company.
- Logo – The company’s logo is in bright pink and white colour that is perfect to attract and hold the attention of its customers.
- Tagline – The company’s logo is very short and crisp that serves the purpose very conveniently. It is – Financing Dreams.
Finova Capital – Business Model
As we all know, a large portion of India’s MSME market falls into the service sector. And this is the segment the company wants to cater to – the plumbers, chaiwallahs, electricians, carpenters, vegetable vendors, etc. These people do not have access to much-needed capital due to the lack of financial literacy, formal documentation, or the presence of mid-level players.
Given the sector the company addresses, Finova Capital looks at a borrower’s cash flow as opposed to formal documentation for credit assessment. The company has created customized templates which are used to analyze credit ratings across each sector. They also have customized templates for different professions ranging from carpenters to vegetable vendors.
Finova Capital – USP
Some of the USPs of the company are as follows:
- Unrivalled Flexibility
- Outstanding Service
- Fair Decisions
- Tailor-Made Solutions
- Transparent Dealings
- Valur Commitments
Finova Capital – Funding and Investors
Finova Capital has raised $123.2 M funding in over 7 rounds, from various investors. Some of its funding and investors are as follows:
- $6 M – Seed Round, 2018
- $15 M – Venture Round, 2019
- $135.9 K – Debt, Punjab National Bank, Sep 2020
- $35 M – Equity, Sequoia Capital, Faering Capital, Oct 2020
- $65 M – Venture Round, Norwest Venture Partners, Maj Invest, Faering Capital, Mar 2022
Finova Capital – Branches
The company has many branches all over India. Some of the states covered by them are as follows:
- Madhya Pradesh
- Uttar Pradesh
- Delhi NCR
Finova Capital – Growth
Some of the growth factors that the company has seen in the past few years are as follows:
- The company saw a CAGR (Compound Annual Growth Rate) of 19% over the past few years.
- Their CAGR comprises 17% of the total credit and it is expected to reach 22% by the end of FY 22.
- Finova Capital reported a growth of 180% in income in the second year only.
- They have over 100 branches in various states of the country.
Finova Capital – Competitors
Finova Capital has many competitors in the market. It is facing cut-throat competition from many companies and some of them are performing food on various levels. Some of the top competitors of Finova are as follows:
- Capital Float
Finova Capital – Challenges
Finova Capital, just like any other startup had to face various challenges in its entrepreneurial journey. Some of the main challenges faced by the company are as follows:
- Scaling Up - This is a challenge for any Fintech company. Scaling up is not easy as they require a lot of funds. In Finova’s case as well, they had to struggle in the beginning to scale their business.
- Competitors – Finova has various competitors in the market. Many fintech players are competing in the same space for a larger market share. Overshadowing them is not very easy for Finova. Several small finance banks and traditional NBFCs are also in the race and Finova has to compete with them as well.
- Raising Resources – This is by far one of the biggest challenges for any fintech company. Raising resources from banks and the market is not easy and the company had to struggle to make them believe in its vision.
- Concentration Risk – This is also one of the challenges for the company as they operate in militated geography and that too with a single product.
Finova Capital – Future Plans
Finova Capital has many exciting plans lined up for the coming future. They want to see substantial growth in their business by providing the best service to their customers. Some of its upcoming plans are as follows:
- Finova Capitals wants to give their full focus on Rajasthan and grow.
- They want to expand to more than 20 branches by the end of FY 22.
- The company wants to increase its employees and hire more qualified people for the job.
- Finova Capital is looking to invest in technology in the coming years.
- The company wants to open 20-25 more branches in the coming few years.
- They also want to overshadow their competitors and acquire a good market share.