Dugar Finance has raised 5 million dollars equivalent to Rs 45 crore in a Pre-Series A funding round led by HegdInvst, a Category II AIF focused on growth equity investments.
The capital will support the company in scaling its secured MSME lending franchise alongside its established vehicle finance business, while deepening its presence across tier 2 to 6 semi-urban and rural markets.
The company had earlier raised approximately 18 million dollars equivalent to Rs 160 crore in structured debt from domestic and international lenders, including Symbiotics and British International Investment, along with multiple Indian banks in December 2025.
The latest fundraise comes at a time when NBFCs are recalibrating growth amid tighter liquidity conditions and rising credit costs. Dugar Finance is positioning itself for calibrated expansion built on credit discipline.
While historically focused on commercial and passenger vehicle finance, the company is expanding into secured MSME lending to build a more balanced and diversified loan book.
Ramesh Dugar, Founder and Managing Director, Dugar Finance, stated that the company is entering a phase where diversification and disciplined scaling are critical to growth.
Dugar Finance currently operates across six states and plans to expand to ten states over the next three years, alongside a measured expansion of its branch network. The company is targeting Rs 2000 crore in assets under management over the next three to four years, while aiming to maintain gross non-performing assets below 2 per cent and return on assets in the 4 to 5 per cent range.
The fresh capital will be deployed towards strengthening technology infrastructure, advancing analytics-led underwriting, building centralised risk systems, and hiring senior talent.
For HegdInvst, the investment aligns with its strategy of backing regionally strong secured NBFCs with disciplined credit practices in underserved markets.
Aditya Bhandari, Founder and Managing Partner, HegdInvst, noted the company’s potential to build a well-governed and diversified secured lending platform.
The investor will also support Dugar Finance in strengthening governance, accessing international capital, and building a professional management team.
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