In a significant move to bridge the credit gap for India’s “missing middle,” Dugar Finance & Investments Limited has successfully raised $18 million (approximately ₹160 crore) in a debt funding round. The investment, led by Swiss-based impact investor Symbiotics, marks a pivotal step in the NBFC’s mission to expand its footprint into the country’s underserved rural and semi-urban heartlands.
The funding round saw robust participation from a consortium of leading Indian financial institutions, including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank, and STCI Finance.
Scaling Impact in the “Growth Corridors”
The fresh capital is earmarked for strengthening Dugar Finance’s secured MSME (Micro, Small, and Medium Enterprises) lending portfolio. Specifically, the company plans to penetrate Tier-2 to Tier-6 markets, targeting micro-entrepreneurs and first-time commercial vehicle drivers who remain largely underserved by traditional formal credit.
“This raise underscores the strength of our asset quality and disciplined execution,” said Ramesh Dugar, Founder and Managing Director of Dugar Finance. “It affirms our partners’ confidence in our commitment to expanding finance in regions where formal credit remains limited.”
Strategic Growth and Financial Targets
Founded in 1987, the Chennai-based lender has built a reputation for prudent risk management and disciplined underwriting. With this latest infusion, the company has set ambitious targets for the coming years:
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Network Expansion: Scaling to more than 75 branches from its current presence across six states.
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Asset Growth: Aiming to reach ₹600 crore in Assets Under Management (AUM) by FY27, with a long-term goal of ₹2,000 crore by FY29.
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Operational Excellence: Maintaining a high financial standard with a Return on Assets (RoA) above 4% and keeping Gross Non-Performing Assets (NPAs) below 2%.
Strengthening the Symbiotics Partnership
This $18 million round follows a $3 million debt raise earlier this year through a Green Basket Bond issued by Symbiotics Investments. Symbiotics contributed an additional $5.5 million in this current round, bringing its total investment in Dugar Finance to $8.5 million.
Prashant Bhardwaj, Regional Manager for South Asia at Symbiotics, noted that the investment aligns with their mission of fostering sustainable development. By providing targeted funding to MSMEs, the bond aims to drive long-term economic activity and social impact in India’s emerging economies.
As Dugar Finance moves toward its FY29 goals, this capital injection provides the necessary runway to transform from a regional player into a dominant scalable platform for India’s rural entrepreneurs.
By: Sandhya Bharti
