Mahaveer Finance raises Rs 200 crore led by Elevation Capital and others

Non-banking finance company Mahaveer Finance has raised Rs 200 crore in an equity funding round led by Elevation Capital.

The round also saw participation from Banyan Tree Finance and First Bridge Capital.

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The funds will help the company open more branches in South India, improve its own credit system, and offer more loans to people with limited access to banking. Mahaveer now manages over ₹1,000 crore in assets and plans to grow this five times by FY28.

This is the first time Mahaveer Finance has raised venture funding. The company was founded in 1981 and is currently run by brothers Praveen and Deepak Dugar. Earlier, the company raised Rs 75 crore in two rounds from private equity firms Banyan Tree and First Bridge Capital.

“With this new funding round, we want to strengthen our governance structure, grow our business and also invest in technology to increase the efficiency of our business execution,” said Praveen Dugar, chief financial officer of Mahaveer Finance.

Mahaveer Finance, which currently provides loans for used commercial and passenger vehicles, is now planning to expand into new areas with products like loans against property (LAP).

From 2016 to 2025, the company grew its loan book from Rs 50 crore to Rs 1,000 crore, and now aims to reach Rs 5,000 crore in the next 2–3 years. It partners with major lenders like State Bank of India, HDFC Bank, and AU Small Finance Bank.

Mahaveer plans to offer business loans of Rs 10–15 lakh on average through its branch network. Currently operating in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, it has 80 branches and expects to grow this number to over 100 by year-end.

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