Finova Capital, a Jaipur-based non-banking financial company focused on micro, small, and medium enterprises (MSMEs), has secured US$135 million in a Series E funding round.

This funding round was led by Avataar Venture Partners, Sofina, and Madison India Capital, with Norwest Venture Partners also participating.

Existing investors such as Peak XV Partners, Faering Capital, and Maj Invest are involved in this transaction.

Finova Capital, founded in 2015, plans to use the acquired funds to expand its loan offerings.

Currently, the company operates 400 branches in 16 states. It uses technology to support micro-entrepreneurs and semi-skilled professionals, who often have limited access to traditional financing.

Unitus Capital, based in Bangalore, acted as the financial advisor for this transaction.