Team StartupCity

• Raises $18Million debt round to expand secured MSME lending and reach Tier-2 to Tier-6 markets
• Symbiotics leads with $5.5Million; major Indian banks also participate
• Plans to scale branches and assets under management while supporting underserved entrepreneurs

Chennai-based Dugar Finance, a secured MSME lender focused on impact-driven financing, has raised $18 million in a debt funding round led by Swiss investor Symbiotics. The round also saw participation from prominent Indian banks, including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank, and STCI Finance. Symbiotics contributed $5.5 million toward the round.

The fresh capital will strengthen Dugar Finance’s secured lending portfolio and support its expansion into Tier-2 through Tier-6 cities across India. The company focuses on providing loans to micro-entrepreneurs, small businesses, and first-time commercial vehicle drivers who are often underserved by traditional lenders.

Founded by Ramesh Dugar, the NBFC operates across six states, serving semi-urban and rural markets. It specializes in disciplined underwriting, robust governance, and prudent risk management. Dugar Finance aims to deepen relationships with institutional lenders and build a resilient, scalable lending platform that supports long-term economic activity in India’s growth corridors.

Also Read: True Credits Raises $75 Million to Scale Digital Lending in India

The company plans to scale to over 75 branches and target an assets under management (AUM) of Rs 600 crore by FY27 and Rs 2,000 crore by FY29. Dugar Finance maintains strong financial metrics, including a return on assets above 4 percent and gross NPAs below 2 percent, reflecting its commitment to sustainable growth.

This funding milestone marks another step in Dugar Finance’s mission to empower underserved entrepreneurs and expand access to secured credit across India’s emerging markets.