Mahaveer Finance India Limited, a leading Chennai-based non-banking financial company (NBFC) specializing in used commercial and passenger vehicle financing, announced its Rs. 200Cr fund raise, led by Elevation Capital, with participation from existing investors BanyanTree Finance and First Bridge Capital. The fundraise underscores the growing confidence in Mahaveer Finance's robust business model built on the back of multi decadal and business cycle experience, tech adoption and loyal employee base.
This strategic infusion of capital will empower the company to deepen its presence in its strong hold markets in South India, expand its technological infrastructure, and help more customers who are currently underserved - lacking options besides informal moneylenders.
Founded in 1981, Mahaveer Finance has established itself as a pivotal player in the vehicle financing ecosystem, with a strong focus on the used vehicle market. The company has been on a very strong growth trajectory since 2016, under the leadership of the 2nd generation of the founding family, growing their AUM from 50Cr in 2016 to ~1000Cr currently. They have been able to accomplish this profitably by efficient use of technology to underwrite borrowers through its proprietary credit engine, SURETY and an in-house LOS which results in high employee productivity and low credit cost. Early adoption of digital payment methods has led to cash payments coming down to low double digits. Also, a people led approach has led to the lowest attrition in the industry.
Under the leadership of MR. Deepak Dugar and Mr. Praveen Dugar, the company has grown its network to over 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, and Puducherry, Karnataka serving more than 20,000 active customers.
"This funding milestone validates our four-decade journey of serving the underbanked segments of India's economy," said Deepak Dugar, CEO and Managing Director of Mahaveer Finance. "With Elevation Capital's partnership and our existing investors' continued confidence, we are well-positioned to scale our proven business model across new geographies while maintaining the current credit approach that has delivered consistent profitability.”
The best validation of a business is to earn the respect of your competitors and to us, it is personally satisfying to have onboarded every noteworthy vehicle financier in the country on our lender list. Our focus remains on empowering small business owners and first-time vehicle buyers who form the backbone of India's commercial transportation ecosystem." said Praveen Dugar, CFO and DMD of Mahaveer Finance.
Talking about the investment, Mridul Arora, Partner, Elevation Capital, said, "At Elevation, we continue to believe that expanding access to financial services is a foundational opportunity in India. Mahaveer Finance, with over four decades of experience in financing used commercial and passenger vehicles, has established a strong presence across Southern India through its extensive branch network. Their deep-rooted understanding of the needs of small road transport operators and commitment to serving underserved segments align well with our thesis on access driven financial services."
The NBFC’s exceptional performance is underscored by its strategic approach to market positioning, focusing on underserved Tier 2-5 markets where traditional banks have limited presence, and by its proprietary credit model that enables quick decentralized decision making at industry-beating TATs.. Mahaveer Finance has cultivated relationships with over 40 lenders including State Bank of India, HDFC, AU Small Finance Bank along with a host of NBFC’s and AIF’s enabling diversified funding sources.
The Series C funding comes at a pivotal time for India's used vehicle financing sector, which continues to experience strong growth momentum. NBFCs hold a significant market share in used commercial Vehicle financing, with substantial untapped potential in rural and semi-urban markets where formal lending penetration remains lower compared to mature markets. The company's focus on first-time buyers and new-to-credit customers positions it well to capitalize on India's expanding middle class and evolving vehicle ownership patterns. The latest round will support Mahaveer's expansion into new geographies, increasing penetration and adding new segments.