In a bold step toward transforming credit access for India’s underserved vehicle owners and micro-entrepreneurs, Mahaveer Finance, a Chennai-based NBFC, has raised Rs 200 crore (~$23.1 million) in an equity round led by Elevation Capital, with continued support from Banyan Tree Finance and First Bridge Capital.
This marks a significant milestone for the 37-year-old institution, which began its journey offering small loans for second-hand vehicles and has since grown into a formidable financial force in South India. The funding will be used to upgrade its governance systems, strengthen tech platforms, and scale operations—steps that are essential for the company as it charts a course toward a Rs 5,000 crore loan book over the next few years.
At the helm of this transformation is Praveen Dugar, who has guided Mahaveer Finance from a modest Rs 50 crore book in 2016 to Rs 1,000 crore by 2025, all while keeping its mission rooted in financial inclusion. The company’s vision now includes diversifying into new products, such as loan against property (LAP) and business loans through a branch-led model, offering ticket sizes of Rs 10–15 lakh to underserved MSMEs.
Mahaveer currently operates across Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, with 80 branches, and plans to cross 100 branches by the end of 2025. Its partnerships with key financial institutions like SBI, HDFC Bank, and AU Small Finance Bank bolster its credibility and reach.
With monthly disbursements of Rs 75–80 crore, a FY24 revenue of Rs 136 crore, and a net profit of Rs 16 crore, Mahaveer is not just expanding—it’s doing so sustainably. The company expects to touch Rs 100 crore in monthly disbursals by FY25, underscoring its readiness for scale.
In a world of flashy fintechs and app-based lending, Mahaveer Finance is proof that trust, relationships, and boots-on-the-ground operations still matter—especially when serving India’s vast informal economy. This round is not just capital infusion—it’s a vote of confidence in a vision deeply tied to Bharat’s real economy.
