Symbiotics Leads USD 18 Mn Debt Round in Dugar Finance The round also saw participation from Indian lenders such as Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance.
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Dugar Finance and Investments Limited has raised USD 18 million (about INR 160 crore) in a debt funding round led by Switzerland-based impact investor Symbiotics.
The round also saw participation from Indian lenders such as Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance.
Symbiotics invested USD 5.5 million in this round, taking its total investment in the Chennai-based non banking financial company to USD 8.5 million, including a previous USD 3 million green bond.
The fundraise exceeded the original target of USD 12 million, indicating growing confidence among lenders.
According to the company, the fresh funds will help it enter new geographies, expand its branch network in underserved regions and further improve data driven credit assessment and risk management capabilities. The funds will also be used to strengthen secured lending to micro, small and medium enterprises and support expansion into smaller cities and towns.
Founded in 1987 by Ramesh Dugar and Sonali Dugar, Dugar Finance is a Reserve Bank of India registered, non deposit taking NBFC. It currently operates across 6 states, largely catering to semi urban and rural customers. The company offers commercial vehicle loans, mortgage loans, loans against property for small businesses and select green financing products.
Dugar Finance focuses on income generating secured loans for micro entrepreneurs, small businesses and first time commercial vehicle drivers who have often faced limited access to formal credit.
The company aims to expand to more than 75 branches and reach assets under management of INR 600 crore by FY27, with a longer term goal of INR 2,000 crore by FY29, while maintaining profitability and asset quality.
Dugar Finance competes with players such as Shriram Finance, Bajaj Finserv, Muthoot Finance, Kotak Mahindra Bank, Axis Bank and Mahindra Finance.
