Team Startupcity

·  Mahaveer Finance raises  Rs 200 crore in its first-ever VC round led by Elevation Capital, bringing total equity raised to  Rs 275 crore.

·  Plans to expand into new lending verticals like SME loans and LAP, while boosting digital transformation and governance.

·  Aims to grow loan book from  Rs 1,000 crore to  Rs 5,000 crore and expand branch network beyond 100 locations by 2025.

Chennai-based non-banking finance company Mahaveer Finance has raised  Rs 200 crore (approximately $23 million) in equity capital, its very first venture capital round since it was established in 1981. The round was participated in by Elevation Capital, with participation from existing investors Banyan Tree Finance and First Bridge Capital.

Established and managed by brothers Deepak and Praveen Dugar, Mahaveer Finance has historically specialized in lending against used commercial and passenger vehicles. With this new capital injection, the company now aims to speed up its digitalization, enhance governance, and diversify into newer lending segments, including loan against property (LAP) and SME-focused products.

“This funding will enable us to strengthen governance, grow operations, and make technology investments to enhance efficiency,” said Mahaveer Finance Chief Financial Officer Praveen Dugar.

The company had previously raised  Rs 75 crore across two earlier rounds from its existing investors. With the latest raise, the total external equity funding of Mahaveer stands at  Rs 275 crore.

Mahaveer Finance’s loan book has seen substantial growth from  Rs 50 crore in 2016 to  Rs 1,000 crore by 2025. The firm now aims for a five-fold growth to  Rs 5,000 crore over the next 2–3 years. It is presently partnering with major financial institutions like SBI, HDFC Bank, and AU Small Finance Bank for credit partnerships.

Working mostly through a branch-led approach, the firm is extending  Rs 75–80 crore worth of loans every month and plans to increase this to  Rs 100 crore by FY25-end. It is also set to launch business loans in the  Rs 10–15 lakh range for small businesses and entrepreneurs.

Mahaveer Finance currently operates a network of 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. It plans to reach the 100-branch milestone by 2025 end, while expanding its credit product portfolio and deepening reach in tier-2 and tier-3 cities.

For FY 2023–24, Mahaveer Finance reported  Rs 136 crore in revenue and  Rs 16 crore in net profit.

Talking about the investment, Elevation Capital Partner Mridul Arora said, “Mahaveer Finance's extensive experience in catering to small road transport operators and focus on financial inclusion resonate with our thesis of supporting access-oriented financial services.”