Dugar Finance Raises USD 5 Mn in Pre-Series A Round Led by HegdInvst
The newly raised funds will be used to strengthen its technology infrastructure, enhance analytics-driven underwriting, build centralised risk management systems, and hire senior professionals across key functions.
Ramesh Dugar, Founder and Managing Director, Dugar Finance
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Chennai-based non-banking financial company (NBFC) Dugar Finance has raised USD 5 million (around INR 45 crore) in a pre-Series A funding round led by HegdInvst, a Category II alternative investment fund focused on growth equity.
In December last year, Dugar Finance secured USD 18 million (approximately INR 160 crore) in a debt round led by Swiss investor Symbiotics, with participation from Union Bank of India and Karur Vysya Bank. It had also raised USD 3 million through the Green Basket Bond issued by Symbiotics Investments in June.
According to the company, the newly raised funds will be used to strengthen its technology infrastructure, enhance analytics-driven underwriting, build centralised risk management systems, and hire senior professionals across key functions.
Founded by Ramesh Dugar, the company operates as an impact-focused, non-deposit-taking NBFC with a presence across multiple Indian states. It primarily serves tier 3 and tier 4 markets, offering secured loans for micro, small and medium enterprises (MSMEs) and commercial vehicles. Its customer base includes micro-entrepreneurs, small businesses, and first-time commercial vehicle owners who often face limited access to formal credit.
Dugar Finance has traditionally focused on vehicle financing but is now expanding its secured MSME lending portfolio. The shift is aimed at creating a more diversified loan book and reducing dependence on a single segment.
Currently operating in six states, the company plans to expand to ten states over the next three years. It is targeting assets under management of INR 2,000 crore within three to four years, while aiming to keep gross non-performing assets below 2% and maintain a return on assets between 4% and 5%.
Chennai-based non-banking financial company (NBFC) Dugar Finance has raised USD 5 million (around INR 45 crore) in a pre-Series A funding round led by HegdInvst, a Category II alternative investment fund focused on growth equity.
In December last year, Dugar Finance secured USD 18 million (approximately INR 160 crore) in a debt round led by Swiss investor Symbiotics, with participation from Union Bank of India and Karur Vysya Bank. It had also raised USD 3 million through the Green Basket Bond issued by Symbiotics Investments in June.
According to the company, the newly raised funds will be used to strengthen its technology infrastructure, enhance analytics-driven underwriting, build centralised risk management systems, and hire senior professionals across key functions.
