Dugar Finance, a Chennai-based non-banking financial company, is targeting a five-fold jump in assets under management (AUM) to ₹2,000 crore over the next 3–4 years, driven by portfolio and geographical expansion.
The company on Monday raised $5 million (₹45 crore) in a pre-Series A funding round led by HegdInvst, a Category II AIF focused on growth equity investments. The proceeds will be used to scale its secured MSME lending business alongside its established vehicle finance portfolio, and to deepen its presence across underserved tier 2–6 semi-urban and rural markets.
The fresh capital will be deployed across four key areas, including strengthening technology infrastructure, advancing analytics-led underwriting, building centralised risk systems, and hiring senior talent across critical functions.
Rs 160 crore raised
The company had earlier raised about $18 million (₹160 crore) in structured debt from a mix of domestic and international lenders, including Symbiotics and British International Investment (BII), along with multiple Indian banks in December 2025.
Founded in 1987, Dugar Finance operated for nearly three decades as a commercial and passenger vehicle financier before expanding into secured MSME lending. It currently manages AUM of around ₹400 crore, with a five-year CAGR of around 55% with a gross NPA below 1.5%
“Vehicle finance gave us a strong foundation, and we are now leveraging that to build a broader secured lending platform,” said Ramesh Dugar, Founder and MD, Dugar Finance, said in a statement. The company plans to gradually move towards a more balanced mix between secured MSME and commercial vehicle finance, while expanding its presence to 10 states over the next three years from six currently.