Mahaveer Finance, a non-banking finance company (NBFC) based in Chennai that provides loans for used commercial and passenger vehicles, has raised INR 200 crore in a Series C funding round.
The round was led by Elevation Capital, with existing investors BanyanTree Finance and First Bridge Capital also taking part.
Banyan Tree Finance and First Bridge Capital, who had invested before, also joined in this funding round.
Mahaveer Finance will use the new funds to open more branches across South India, improve its in-house credit system, and provide more loans to people who don’t have easy access to banks.
The company currently manages over INR 1,000 crore in assets and aims to grow this amount five times by the financial year 2028.
This is the first time Mahaveer Finance has received funding from venture capital investors. The company was started in 1981 and is now run by brothers Praveen and Deepak Dugar.
Before this, Mahaveer had raised INR 75 crore in two funding rounds from private equity firms Banyan Tree and First Bridge Capital.
“With this new funding round, we want to strengthen our governance structure, grow our business and also invest in technology to increase the efficiency of our business execution,” said Praveen Dugar, chief financial officer of Mahaveer Finance.
Mahaveer Finance, which now gives loans for used commercial and passenger vehicles, is planning to offer new types of loans, too, such as loans using property as security.
From 2016 to 2025, Mahaveer Finance grew its loan book from INR 50 crore to INR 1,000 crore. Now, it plans to reach INR 5,000 crore in the next 2 to 3 years.
The company works with big lenders like the State Bank of India, HDFC Bank, and AU Small Finance Bank to offer loans.
Mahaveer plans to provide business loans of around ₹10 to ₹15 lakh through its branches. Right now, it operates in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka with 80 branches, and it expects to have more than 100 branches by the end of the year.
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