NBFC and Fintech startup Finova Capital, which offers loans to MSME and small enterprises, has raised 15 crore debt from Bank of Baroda (BOB). The fresh debt funding has come after it raised $15 Mn in series B equity funding round in March this year.
According to the regulatory filings, Finova Capital has issued 150 non-convertible debentures at nominal rate of 10, 00,000 per debenture to Bank of Baroda for consideration of 15 crore. Regulatory filings showed that Finova Capital has secured this loan from BOB at 10.86% annual interest rate. The loan is for the period 3 years.
As per ROC filings, the Jaipur based company has also increased its authorized capital from 75 crores to Rs 1,11 crores (Rs One hundred and eleven crores). The increase in authorized capital clearly indicates that the company is likely to raise more equity funds in coming months.
Finova seems to be standing on an equally good financial footing, with the ROC filing showing that the company has earned profit of approximately 14 crore or 140Mn in FY20. In the previous year FY19, the NBFC had earned a profit of approximately 9 crore.
At the time of raising series B round in February, the company said that it will be pursuing aggressive geographical expansion. According to media reports, the company said that it aims to increase its number of branches from 52 to 75 in the current year and will focus mainly on Madhya Pradesh and Delhi for expanding its market further.
As per reports, Finova’s average tick size ranges from Rs 5 lakh to Rs 6 lakh for the period of seven years. Reports further claim that the company till March this year has disbursed Rs 250 crore in loan to 4,500 customers.