Funding · Professional & Local Services
Dugar Finance raises $5M in pre-Series A
By Startup Enthusiast ·
- Date
- Company
- Dugar Finance
- What it does
- MSME and commercial vehicle financing
- Kind
- Funding
- Amount
- $5M (₹45 Cr)
- Stage
- pre-series-a
- Founded
- 1987
What they do
Dugar Finance is an NBFC that provides secured loans to micro-entrepreneurs and small businesses
What happened
It raised $18M led by Symbiotics with Union Bank of India, Karur Vysya Bank, and British International Investment (BII) in Dec 2025, plus an earlier $3M…
Why it matters
The company plans to use the funds for technology, risk systems, and expansion from 6 to 10 states
The details
- Dugar Finance raised $5M (₹45 Cr) in a pre-Series A equity round.
- The round was led by Symbiotics, with participation from Union Bank of India, Karur Vysya Bank, and British International Investment (BII).
- The company had previously raised $18M in debt led by Symbiotics with Union Bank of India, Karur Vysya Bank, and BII in December 2025.
- An earlier debt tranche of $3M came from Symbiotics’ Green Basket Bond.
- The funds will be used for technology infrastructure, analytics-led underwriting, centralised risk systems, and senior leadership hiring.
- Dugar Finance plans to expand from 6 states to 10 states over three years.
- It aims to grow its AUM from ~₹400 Cr to ₹2,000 Cr in 3-4 years.
The bigger picture
- The equity raise marks a shift from debt-only funding to building a stronger capital base.
- HegdInvst will support governance, international capital access, and professional management team building.
- The company is diversifying from vehicle finance into secured MSME lending.
About the business
- Dugar Finance is a non-deposit-taking NBFC focused on impact lending.
- It provides secured MSME and commercial vehicle financing.
- Target customers are micro-entrepreneurs, small businesses, and first-time commercial vehicle owners in underserved tier 2-6 markets.
- The company has a current AUM of ~₹400 Cr.
- It has achieved a 5-year CAGR of ~55%.
- Gross NPAs are targeted below 2% (articles 1,2) or reported below 1.5% (article 3).
- Return on Assets (RoA) is targeted at 4-5% (articles 1,2) or reported at ~5% (article 3).
- Founded in 1987, the company operates from 6 states and plans to expand to 10.
What happens next
- Use funds for technology infrastructure, analytics-led underwriting, centralised risk systems, and senior leadership hiring.
- Expand from 6 states to 10 states over three years.
- Achieve AUM of ₹2,000 Cr in 3-4 years.
- Diversify from vehicle finance into secured MSME lending.
The deal
- Type
- equity
Investors
- HegdInvst (lead) — Category II AIF growth equity fund; will support governance, international capital access, and professional management team building.
Founders
- Ramesh Dugar, Founder & MD
About Dugar Finance
- Product
- Secured MSME loans, vehicle finance, EV loans and rooftop solar financing
- Customers
- MSMEs, self-employed individuals, gig workers, residential customers and housing societies in smaller markets
- How it makes money
- Makes money by lending through a non-deposit-taking NBFC structure
- What sets it apart
- Uses analytics-led underwriting and centralised risk systems for underserved markets
- Operations
- Operates across multiple states with a strong presence in tier 3 and tier 4 markets
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