Chennai-headquartered non-banking financial company (NBFC) Mahaveer Finance has raised ₹200 crore (approximately $23 million) in equity funding, marking its first-ever venture capital round since its inception in 1981. The funding was led by Elevation Capital, with participation from existing investors Banyan Tree Finance and First Bridge Capital.
Founded and operated by brothers Praveen and Deepak Dugar, Mahaveer Finance has traditionally focused on financing used commercial and passenger vehicles. With the new capital, the company aims to accelerate its digital transformation, enhance governance structures, and diversify into new lending verticals such as loan against property (LAP) and SME-focused credit products.
“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.
Before this round, the company had secured ₹75 crore across two funding rounds from Banyan Tree and First Bridge Capital, bringing the total external equity capital raised to ₹275 crore.
Mahaveer Finance’s loan book has grown significantly over the last decade—from ₹50 crore in 2016 to ₹1,000 crore in 2025. The firm now targets a fivefold increase, aiming to expand its loan book to ₹5,000 crore in the next two to three years. It currently collaborates with leading financial institutions such as State Bank of India, HDFC Bank, and AU Small Finance Bank for credit operations.
Operating through a branch-led model, Mahaveer disburses loans worth ₹75–80 crore per month and plans to raise this to ₹100 crore by the end of FY25. It also intends to launch business loans in the ₹10–15 lakh range for small business owners and entrepreneurs.
The company currently operates 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, with plans to expand to over 100 branches by the end of 2025, aiming to deepen its presence in tier-2 and tier-3 towns.
For the financial year ending March 2024, Mahaveer Finance reported total revenue of ₹136 crore and a net profit of ₹16 crore.
Commenting on the investment, 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.”
 Mahaveer Finance has raised ₹200 crore (approximately $23 million) in equity fu...){kind=link}