Mahaveer Finance, a long-standing NBFC based in Chennai known for its grassroots lending focus, has landed a game-changing ₹200 crore in equity funding. Spearheaded by Elevation Capital, the Series C round also saw existing backers BanyanTree Finance and First Bridge Capital double down on their conviction. But this isn’t just a capital boost—it’s a strong endorsement of a company that’s making formal credit accessible to those who typically fall through the cracks.
Started in 1981, Mahaveer has steadily evolved from a humble vehicle financier into a regional force with over ₹1000 crore in assets under management by 2025. The fresh capital will drive its expansion in South India, help digitise its backend, and deepen its services for borrowers stuck in the informal credit web. Today, the NBFC operates out of 80+ branches across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Puducherry, and it’s on a mission to cross the 100-branch milestone soon.
Perhaps most telling, this is Mahaveer’s first significant VC round in its four-decade journey—a nod to how rare but vital such companies are. Mahaveer Finance disburses ₹75–80 crore in loans every month and plans to ramp that up to ₹100 crore monthly by FY25—it has no intention of hitting the brakes. Its entry into secured MSME loans via LAP products signals a strong pivot away from the unsecured lending spree others are chasing. As Elevation Capital’s Mridul Arora put it, Mahaveer’s grasp of grassroots lending makes it a beacon of financial inclusion.
1. Introduction: A Major Milestone in India’s Fintech Landscape
When Mahaveer Finance raises ₹200 crore, it doesn’t just make headlines—it reshapes how regional NBFCs are viewed. This Series C round signals that investors are hungry for sustainable, impact-first financial models. Mahaveer isn’t flashy. It’s gritty. It’s rooted in community trust and operational discipline. That’s precisely why Elevation Capital chose to lead.
2. Company Overview: From Legacy Lender to Emerging NBFC Giant
2.1 Origins and Leadership
Mahaveer didn’t start in a WeWork or during the funding frenzy. It was founded in 1981 by the Dugar family. Today, it’s led by Deepak Dugar (MD & CEO) and his brother Praveen Dugar (Deputy MD & CFO). But make no mistake—they’re not ornamental brass plaques on the office door. These two are neck-deep in the mechanics, obsessed with every detail, and guiding Mahaveer with the kind of instinct and intimacy you only get when the company’s bloodline runs in your veins.
2.2 Growth and Reach
The numbers don’t lie. From ₹50 crore in AUM in 2016 to ₹1000 crore in 2025, Mahaveer’s growth has been deliberate, not desperate. Its 80+ branches across South India aren’t just pins on a map—they’re human-centred credit access points. And they’re aiming for 100 branches by the end of the year.
3. Business and Revenue Model
3.1 Core Offerings
Mahaveer thrives in used commercial and passenger vehicle financing. Its sweet spot? First-time buyers and owner-operators often get a door slammed in their face by traditional banks. It’s secured lending model keeps credit risk in check.
3.2 New Product Lines
Now, it’s eyeing MSME lending via LAP (Loan Against Property). While others rush into unsecured personal loans with questionable margins, Mahaveer is doubling down on asset-backed, responsible finance.
3.3 Technology and Credit Infrastructure
Tech isn’t just a buzzword here. Mahaveer’s in-house credit engine, SURETY, is its spine. Their tech stack has drastically reduced cash collections and bolstered internal efficiency. It’s not “move fast and break things”—it’s “move smart and build right.”
3.4 Revenue and Profitability
In FY24, Mahaveer pulled in ₹136 crore in revenue and ₹16 crore in net profits. With ₹75–80 crore being disbursed monthly and a target of ₹100 crore by FY25, the growth isn’t theoretical—it’s visible.
4. Purpose and Problem Solving
4.1 Serving the Underserved
Mahaveer’s mission has always been about lifting the ignored. First-time truck drivers. New-to-credit borrowers. Rural business owners. These are its people—and it’s sticking with them.
4.2 Focused Geographic Model
It’s “home state” model isn’t a catchy strategy—it’s survival-tested. Mahaveer entrenches deeply in Tamil Nadu, Andhra Pradesh, and Telangana before inching into Karnataka. Expansion is earned, not assumed.
5. Market Landscape and Industry Trends
5.1 Indian NBFC Growth
India’s NBFC space has been expanding at a 15 %+ CAGR, driven by unbanked segments and regulatory leeway. Mahaveer is riding that wave, but doing so with a seatbelt.
5.2 Secured Lending vs. Unsecured Lending
Where fintech darlings jump into unsecured loans and later worry about NPAs, Mahaveer’s secured-first stance is a contrarian but wise move. Asset-backed lending means it can scale without haemorrhaging risk.
5.3 Competitive Landscape
Its biggest rivals? Shriram Transport, Cholamandalam, and Sundaram Finance. But it’s also competing with flashy fintechs slinging personal loans through apps. Mahaveer’s edge? Trust, track record, and real-world branches.
6. The Fundraise: More Than Just Capital
6.1 Strategic Use of Funds
Mahaveer Finance’s raising of ₹200 crore funding isn’t going to lounge in a bank account. It’s earmarked for tech upgrades, governance tightening, branch expansion, and a deep dive into MSME-secured lending. Every rupee has a role.
6.2 Confidence from Investors
Mridul Arora from Elevation Capital didn’t mince words—Mahaveer “gets” its borrowers. This isn’t spray-and-pray funding. It’s strategic alignment. The continued presence of BanyanTree and First Bridge shows this isn’t a one-round fling.
7. Journey and Vision: A Legacy Built on Trust
Mahaveer’s story isn’t glamorous. It’s not peppered with celebrity investors or tweet-worthy metrics. But its journey from a family-run lender to a ₹1000 crore AUM NBFC is gritty and grounded. That’s exactly why it resonates.
What’s next? Sustainable, no-nonsense growth. Personalised credit relationships. And a hard pass on hyper-scaling gimmicks. In an age of digital detachment, Mahaveer’s people-first, branch-led model is refreshingly old-school—and refreshingly effective.
8. Learning for Startups and Entrepreneurs
Mahaveer’s story holds lessons in:
- Sticking to what you know—deeply, obsessively—even as you figure out how to scale without selling out
- Ignoring every shiny trend whispering “quick wins” and instead betting big on the slow burn of earned trust
- Building tech that sharpens human instinct rather than trying to shove it aside with soulless automation
- Growing with discipline, not desperation
- Proving that legacy and innovation can co-exist
Startups chasing flash-in-the-pan metrics should take note: steady wins the race—and earns investor respect.
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Conclusion
With its latest round, Mahaveer Finance raises ₹200 crore, not just filling coffers but fueling a vision. This isn’t capital for vanity—it’s for velocity and value. Mahaveer is setting the bar for what a responsible NBFC can achieve in India’s emerging credit economy. It’s a playbook others would do well to study.
