Chennai-based NBFC firm Mahaveer Finance raises Rs 200 crore led by Elevation Capital, others

Mahaveer Finance, a non-banking financial company (NBFC) based in Chennai, has secured Rs 200 crore (approximately $23 million) in equity funding, marking its first venture capital round since its founding more than four decades ago. Elevation Capital led the round, with existing investors Banyan Tree Finance and First Bridge Capital also participating.

Founded in 1981 and operated by brothers Praveen and Deepak Dugar, Mahaveer Finance historically provided loans for used commercial and passenger vehicles. With this fresh infusion, the firm plans to accelerate its digital transformation, strengthen governance, and expand into new verticals—including loan against property (LAP) products and SME-focused offerings.

“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, the company’s chief financial officer.

The firm had previously raised Rs 75 crore over two rounds from Banyan Tree and First Bridge Capital. The latest fundraise brings total external equity capital raised to Rs 275 crore.

Mahaveer’s loan book has expanded sharply over the past decade, growing from Rs 50 crore in 2016 to Rs 1,000 crore by 2025. The firm now aims to scale this figure fivefold to Rs 5,000 crore over the next two to three years. It currently works with large lenders such as State Bank of India, HDFC Bank, and AU Small Finance Bank to support its credit operations.

Operating through a branch-led model, the company disburses loans worth Rs 75–80 crore every month, with plans to increase this to Rs 100 crore by the end of FY25. The company also plans to extend business loans in the Rs 10–15 lakh ticket size range to entrepreneurs and small businesses.

At present, Mahaveer has a network of 80 branches spread across Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. The company aims to grow this number to more than 100 by the end of the calendar year, in tandem with its goal to widen its credit offerings and deepen its reach in tier-2 and tier-3 geographies.

For the financial year ended March 2024, Mahaveer Finance reported Rs 136 crore in total revenue and Rs 16 crore in net profit.

Mridul Arora, Partner at Elevation Capital, said, "Mahaveer Finance's deep-rooted understanding of small road transport operators and their commitment to financial inclusion aligns perfectly with our investment thesis of access-driven financial services."