Non-banking finance company Finova Capital raised $135 million from Avataar Venture Partners, Madison India Capital and Belgian investment fund Sofina to expand its equity as it looks to grow business by 30% annually.

The company concluded the deal on Monday, which is worth Rs 1,100 crore in local currency.

This is the first equity raising by the financial services firm in two years and by far its biggest fundraise in a single tranche.

All the three are first-time investors in Finova. Existing investor Norwest Venture Partners also participated in the round, Mohit Sahney, founder and managing director of Finova, told ET.

The equity was raised through a combination of primary and secondary deals, he said.

"We would like to grow around 30% for the next couple of years with this equity infusion and invest in technology and expand geographically," Sahney said. The company has been growing at a CAGR of more than 60% over the last five years with the assets under management reaching to around Rs 3000 crore at the end of September.

Peak XV Partners, Faering Capital and Maj Invest are early investors in the company. The equity transaction helped partial exit to some of these early investors.

Bengaluru-based Unitus Capital acted as the exclusive financial transaction advisor to Finova.

Jaipur-based Finova lends to micro, small and medium enterprises. Founded in 2015 by Mohit and Sunita Sahney, Finova Capital has been profitable from the first year and has a presence across 16 states with 400+ branches.

In FY24, the startup company earned a consolidated profit after tax of Rs 152 crore and a total income of Rs 529 crore. With the latest equity infusion, the net worth of the company grew to Rs 1840 crore, Sahney said.

The company has so far raised about Rs 1460 crore in equity since inception.