Dugar Finance & Investments, an impact-led secured MSME lender, has raised $18 million (₹160 crore) in a debt funding round led by Swiss-based impact investor Symbiotics, with participation from leading Indian banks including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance, among others.
Symbiotics contributed $5.5 million in this round, bringing its total investment in Dugar Finance to $8.5 million, including a previous $3 million Green Bond.
The fresh funds raised will be used to strengthen its secured MSME lending and support its expansion into Tier-2 to Tier-6 markets across India. The capital will enable Dugar Finance to enter new geographies, deepen distribution in underserved regional markets, and further strengthen its analytics-driven credit and risk capabilities.
Dugar Finance is an impact-focused, non-deposit-taking NBFC operating across multiple states in India with a strong presence in tier 3 and tier 4 markets.
Its portfolio includes income-generating secured MSME loans and commercial vehicle loans, supporting micro-entrepreneurs, small businesses, and first-time commercial vehicle drivers who have historically faced limited access to formal credit.
The company specializes in secured MSME and commercial vehicle financing aimed at income generation, supporting micro-entrepreneurs, small businesses, and first-time commercial vehicle drivers who remain underserved by formal credit.
Dugar Finance is the flagship company of Dugar Group. Dugar Finance currently operates across six states, serving semi-urban and rural customers. It has 30+ offices in Tamil Nadu, Maharashtra, Gujarat, Karnataka, Andhra Pradesh and Telangana.
The company aims to scale to 75+ branches and ₹600 crore AUM by FY27 and ₹2,000 crore AUM by FY29, while maintaining its strong financial performance, including an RoA of above 4% and Gross NPAs below 2%.
Ramesh Dugar, Founder and Managing Director, said, “This raise underscores the strength of our asset quality, governance, and disciplined execution. It affirms our partners’ confidence in our long-term vision and our commitment to expanding secured MSME and commercial vehicle finance in regions where formal credit remains limited. We will continue to scale responsibly while reinforcing the governance and operational rigor that define Dugar Finance.”
Prashant Bhardwaj, Regional Manager, South Asia at Symbiotics, said, “This MSME-focused bond will be used to increase access to funding for the missing middle MSME segment. The issuance of this bond is aligned with Symbiotics Investments’ mission to foster the sustainable development of MSMEs in emerging and frontier economies. We are excited to support the growth of this segment and delighted to partner with Dugar Finance.”
