Mahaveer Finance Secures INR 20 Cr From Blacksoil Capital
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Chennai-based asset financing non-banking financial company (NBFC) Mahaveer Finance, on Tuesday, announced to have raises INR 20 crore bridge equity through structured funding from Mumbai-based Blacksoil Capital before its Series C funding of 100 crore in the current year. The funds will be utilized to achieve its target AUM of INR 500 crore for the year.
The company aims to serve the gaps in the used commercial vehicle market retail segment and first-time buyers/new to credit buyers, where most of the large players in used commercial vehicle finance cater to large fleet operators.
“We heartily appreciate the quick turn-around time, prompt decision making, and well supportive team from Black Soil which helped us close this within committed timelines. The fund infusion would strengthen the firm’s balance sheet and will enable us to tap growth opportunities that continue to emerge in the current market towards our larger goal of INR 2000 crore in the next 3 years. This transaction will be a stepping-stone for the upcoming Series C INR100 crore fundraise. After our first round by BanyanTree in 2018, we have grown the book from INR 50 - 300 crore and the current round from BlackSoil will help us achieve INR 500 crore,” Praveen Dugar, promoter, Mahaveer Finance.
All loans are secured, livelihood financing enabling self-employment/micro-entrepreneurship. Typical loan-to-value (LTV) is conservative at 70-80 per cent, which ensures that borrowers have a significant equity investment in the vehicle leading to superior credit outcome. The company has built in-house capabilities for end-to-end processes starting from loan origination to recovery. The company claimed to have recorded a 48 per cent year-on-year (y-o-y) growth from INR 30 crore in FY15 to a present portfolio of ~INR 300 crore with over 11,000 active customers.
“The company has established rigorous credit controls, portfolio monitoring systems, and loan recovery systems, which reflects in its Gross NPA levels, which is at par with industry benchmarks. The company has also shown strong resilience during COVID times while dealing with the customer segment which was among the most impacted due to the lockdown restrictions. Based on this, we strongly believe in their business model and scalability. We look forward to supporting them in growing their portfolio and expanding their presence,” stated Ankur Bansal, co-founder, Blacksoil Capital.
Blacksoil’s past deals include OYO, Spinny, Purplle, Zetwerks, Vogo, LetsTransport, EarlySalary, and iNurture amongst others. Blacksoil has recently raised INR 126 crore for the first close for its maiden secured credit fund.
Founded in 1981, the company has raised over INR 350 crore of debt from over 26 relationships which are well-diversified with PSU Bank, Private Banks, AIFs & NBFCs. Recently Company has raised INR 50 Crore of TLTRO funding from its PSU Bankers.