Mahaveer Finance raises Rs 200 crore from Elevation Capital and others

Chennai-based non-banking finance company Mahaveer Finance has raised Rs 200 crore in an equity funding round that was led by Elevation Capital, along with participation from Banyan Tree Finance and First Bridge Capital.

This is the first venture funding round for Mahaveer Finance, which was founded in 1981 and is run by brothers Praveen and Deepak Dugar.

“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.


Earlier, the company had raised Rs 75 crore over two rounds from private equity investors Banyan Tree and First Bridge Capital.

The NBFC, which has been offering credit to consumers buying used-commercial and passenger vehicles, wants to diversify into new areas with new products like loan against property (LAP).

Between 2016 and 2025, Mahaveer Finance grew its loan book from Rs 50 crore to Rs 1,000 crore and now the firm has set an aim to build a book of Rs 5,000 crore within the next two to three years. It works with large lenders such as State Bank of India, HDFC Bank and AU Small Finance Bank.

The company wants to offer business loans with an average ticket size of Rs 10-15 lakh through a branch-led model. It currently operates in Tamil Nadu, Andhra Pradesh, Telangana and Karnataka. The company said its current network of 80 branches will grow to more than 100 by the end of the year.

The firm disburses Rs 75-80 crore per month, which it wants to scale up to Rs 100 crore by the end of this fiscal year. It had closed FY24 with a total revenue of Rs 136 crore and a net profit of Rs 16 crore.