Finova Capital Empowering India’s Underserved Through Inclusive Financial Solutions

 1. Introduction

Finova Capital is a Non-Banking Financial Company (NBFC) that primarily focuses on providing customized financial solutions to underserved and unbanked segments in India, especially in semi-urban and rural areas. The company’s mission is to bridge the credit gap for small business owners and lower-income households through responsible and accessible financing. Finova’s core offerings include secured business loans, housing loans, and loans against property, specifically designed for micro, small, and medium enterprises (MSMEs).

2. Company Overview

3. Unique Approach

Finova Capital differentiates itself through a hybrid model that combines traditional underwriting with tech-enabled processes to evaluate the creditworthiness of informal sector borrowers. The company uses proprietary credit assessment tools and a doorstep service delivery model to cater to first-time borrowers who may lack formal financial documentation. Its field officers are trained to assess business viability on-ground, offering personalized loan structuring based on borrower needs and repayment capacity.

4. Market Impact / Problem Solved

Finova addresses a critical gap in the Indian financial ecosystem by offering credit to micro-entrepreneurs, small shop owners, and individuals from low-income backgrounds who are typically excluded from formal banking channels. By enabling access to capital, the company empowers these segments to sustain and expand their businesses, contributing to local economic development. Its customer base primarily consists of individuals with limited documentation and thin credit history, often ignored by traditional lenders.

5. Collaborations & Achievements

• Funding Milestones: Finova has raised multiple rounds of funding from reputed investors including Sequoia Capital India, Faering Capital, and Maj Invest.
• Recognition: Featured among India’s fast-growing NBFCs catering to the unbanked population.
• Collaborations: Partnered with banks and financial institutions for co-lending arrangements and capacity building.
• Expansion: Expanded operations across several states with a strong branch network in Rajasthan, Madhya Pradesh, Uttar Pradesh, and other Tier 2/3 markets.

6. Sustainability / Innovation

Finova emphasizes ethical lending practices and promotes financial literacy among its clients. The company has introduced paperless onboarding, e-KYC, and digital repayment tracking systems to reduce operational inefficiencies and enhance customer convenience. While not explicitly marketed as a green finance initiative, the adoption of digital tools indirectly supports sustainability by reducing paper usage and enabling remote servicing.

7. Leadership / Founder Insights

Mohit Sahney, Founder of CEO, brings extensive experience in retail banking and microfinance, having held leadership roles at ICICI Bank. His vision is rooted in creating inclusive financial services that empower micro-entrepreneurs.

Sunita Sahney, Co-Founder, supports operations with a focus on field engagement and credit disbursal strategies tailored to underserved markets.

8. Conclusion

Finova Capital plays a significant role in enhancing financial inclusion in India by focusing on underbanked and credit-invisible populations. Its grassroots approach, combined with innovative credit assessment techniques, positions it as a notable NBFC in the MSME lending space. As it continues to expand and invest in technology, Finova is expected to make further contributions to India’s financial ecosystem by supporting micro-enterprises and encouraging economic self-reliance in underserved communities.

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