Dugar Finance raises $18 million in a debt round led by Swiss-based impact investor Symbiotics

Dugar Finance & Investments Ltd. has raised $18 million in a debt funding round led by Swiss-based impact investor Symbiotics, as the non-bank lender looks to expand its secured lending offerings for small businesses in India’s smaller towns.

The round also saw participation from Indian lenders including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance, the company said in a statement on Friday.

Symbiotics contributed $5.5 million to the round, taking its total exposure to Dugar Finance to $8.5 million, which includes a $3 million green bond issued earlier this year. The fundraise surpassed the company’s initial target of $12 million.

According to the statement, the fresh capital will be deployed to strengthen secured MSME lending and support expansion across Tier II to Tier VI markets. Dugar Finance aims to grow to more than 75 branches and achieve assets under management of Rs 600 crore by fiscal year 2027.

Currently, the company operates across six Indian states, providing secured MSME loans and commercial vehicle financing to borrowers in semi-urban and rural areas.

“This raise underscores the strength of our asset quality, governance, and disciplined execution,” Ramesh Dugar, Founder and Managing Director, said. “It affirms our partners’ confidence in our long-term vision and our commitment to expanding secured MSME and commercial vehicle finance in regions where formal credit remains limited."

Symbiotics said the funding aligns with its focus on expanding access to credit for underserved enterprises. “This MSME-focused bond will be used to increase access to funding for the missing middle MSME segment,” said Prashant Bhardwaj, Regional Manager for South Asia at Symbiotics. “The issuance of this bond is aligned with Symbiotics Investments’ mission to foster the sustainable development of MSMEs in emerging and frontier economies.”

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