Dugar Finance, an impact-focused secured MSME lending NBFC, has raised $18 million (around ₹160 crore) in a debt funding round led by Swiss-based investor Symbiotics. The round also saw participation from several Indian financial institutions, including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank, and STCI Finance, among others. Symbiotics contributed $5.5 million as part of the transaction.
This marks the company’s second fundraise involving Symbiotics in 2025. Earlier in June, Dugar Finance had raised $3 million in debt through the $75 million Green Basket Bond issued by Symbiotics Investments.
Focus on MSME Lending and Deeper Market Reach
According to the company, the newly raised capital will be used to strengthen its secured MSME lending portfolio and expand operations across Tier-2 to Tier-6 markets in India. The funding is expected to support branch expansion, portfolio growth, and deeper penetration into underserved semi-urban and rural regions.
Led by Ramesh Dugar, Dugar Finance is a non-deposit-taking NBFC with a strong presence in Tier-3 and Tier-4 markets. The Chennai-based lender specialises in secured MSME loans and commercial vehicle financing, targeting income-generating activities for micro-entrepreneurs, small businesses, and first-time commercial vehicle owners who typically lack access to formal credit.
Emphasis on Governance and Scalable Growth
The company follows a strategy centred on disciplined underwriting, prudent risk management, and strong governance standards. It aims to deepen relationships with institutional lenders while building a resilient and scalable lending platform aligned with long-term economic growth in India’s emerging corridors.
Currently operating across six states, Dugar Finance plans to scale its network to over 75 branches by FY27. The NBFC is targeting ₹600 crore in assets under management (AUM) by FY27 and ₹2,000 crore AUM by FY29, while maintaining financial discipline with a return on assets above 4% and gross NPAs below 2%.
The latest fundraise further strengthens Dugar Finance’s position as a growing player in India’s secured MSME lending space, at a time when credit demand in smaller towns continues to rise.
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