Chennai-based NBFC Dugar Finance has raised $5 million (approximately Rs 45 crore) in a pre-Series A funding round led by HegdInvst, a Category II AIF focused on growth equity. The company had earlier raised $18 million in debt from Symbiotics and Indian banks, along with $3 million via Green Basket Bond, reflecting strong access to capital across equity and debt.
Capital to strengthen tech, underwriting, and risk systems
The fresh funds will be deployed across key areas including technology infrastructure, analytics-led underwriting, centralised risk systems, and senior leadership hiring. The focus is on building a more robust and scalable lending platform for underserved segments.
Focused on secured MSME and vehicle financing
Led by Ramesh Dugar, the company operates as an impact-focused NBFC with a strong presence in tier 3 and tier 4 markets. It provides secured MSME loans and commercial vehicle financing, targeting micro-entrepreneurs, small businesses, and first-time drivers who lack access to formal credit.
Expanding footprint and diversifying loan book
Dugar Finance currently operates in 6 states and plans to expand to 10 states over the next three years. The company is also diversifying its portfolio to achieve a more balanced mix between MSME lending and vehicle financing, improving resilience across economic cycles.
Targeting Rs 2,000 crore AUM with strong asset quality
The NBFC aims to reach Rs 2,000 crore AUM in 3–4 years, while maintaining GNPA below 2% and RoA of 4–5%. The strategy reflects a focus on sustainable growth, risk discipline, and profitability in India’s evolving MSME credit ecosystem.
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