Mahaveer Finance India, a non-banking financial company (NBFC) specialising in used commercial and passenger vehicle financing, has raised ₹200 crore in funding led by Elevation Capital. The round also saw participation from existing investors BanyanTree Finance and First Bridge Capital.
The funds raised will be used to strengthen its presence in South India, enhance its technological infrastructure, and serve a broader base of underserved customers who are lacking options besides informal moneylenders.
Founded in 1981, Mahaveer Finance provides credit for used commercial vehicle financing, catering to retail customers, first-time buyers, and small fleet operators.
Mahaveer’s current customer base primarily consists of first-time vehicle buyers and owner-cum-drivers. With improved credit ratings and a lower cost of borrowing, the company is now expanding into SRTO (small road transport operators) and entering the secured MSME lending segment.
Now, Mahaveer is gearing up for its next vertical: secured MSME lending, particularly loan-against-property products.
The NBFC’s expansion strategy follows a “home state” model, currently spanning Tamil Nadu, Andhra Pradesh, Telangana—and now, cautiously—Karnataka.
The company has grown its network to over 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, and Puducherry, Karnataka serving more than 20,000 active customers.
Under the leadership of Deepak Dugar and Praveen Dugar, the company has grown its Assets Under Management (AUM) from ₹50 crore in 2016 to around ₹1,000 crore today, supported by its proprietary credit engine SURETY, in-house loan origination system (LOS), and digital payment integration.
Mahaveer Finance has cultivated relationships with over 40 lenders including State Bank of India, HDFC, and AU Small Finance Bank along with a host of NBFCs and AIFs enabling diversified funding sources.
Deepak Dugar, Managing Director and CEO, said, “From 50 crore, we grew to 1000 crore AUM based on geographical diversification and the product diversification as well. We are not interested in getting into the unsecured space at all.”
He added, “This milestone validates our four-decade journey of serving the underbanked segments of India’s economy. With Elevation Capital’s partnership and our existing investors’ continued confidence, we are well-positioned to scale our proven business model across new geographies while maintaining the current credit approach that has delivered consistent profitability.”
Praveen Dugar, Deputy MD and CFO, said, “We believe in the experiment, course correct, and then expand model. We are very clear as an ethos for Mahaveer—we believe that we want to make sure that we are only in the secured space.”
Mridul Arora, Partner, Elevation Capital, said, “At Elevation, we continue to believe that expanding access to financial services is a foundational opportunity in India. Mahaveer Finance, with over four decades of experience in financing used commercial and passenger vehicles, has established a strong presence across Southern India through its extensive branch network. Their deep-rooted understanding of the needs of small road transport operators and commitment to serving underserved segments align well with our thesis on access-driven financial services.”
