Dugar Finance & Investments Ltd., a non-bank lender focused on small businesses, has successfully secured $18 million in a debt funding round. The financing was led by Swiss-based impact investor Symbiotics, reinforcing the company's mission to expand secured lending in India's smaller towns. This capital infusion is set to bolster the firm's capacity to serve underserved entrepreneurs in semi-urban and rural markets across the country.
Strategic Capital Infusion
The funding round saw significant participation from prominent Indian lenders, including Union Bank of India, Karur Vysya Bank, and Indian Overseas Bank. This broad support helped the company surpass its initial fundraising target of $12 million, signaling strong market confidence. Symbiotics anchored the round with a $5.5 million investment, bringing its total commitment to Dugar Finance to $8.5 million.
Fueling Expansion into Underserved Markets
The newly acquired capital is earmarked for expanding the company's secured MSME lending portfolio and extending its operational footprint. Dugar Finance will strategically target Tier II to Tier VI cities, where access to formal credit remains a significant challenge for small enterprises. This expansion is a core component of the company's strategy to drive economic activity in India's growth corridors.
With this financial backing, the company has set ambitious growth targets for the coming years. It plans to scale its network to more than 75 branches across the country. The firm aims to increase its assets under management (AUM) to Rs 600 crore (≈ $70 million) by the fiscal year 2027, with a long-term goal of Rs 2,000 crore by FY29.
A Mission-Driven Approach to Lending
Dugar Finance specializes in providing secured MSME loans and commercial vehicle financing to a niche clientele. The company primarily serves micro-entrepreneurs and first-time vehicle owners in semi-urban and rural areas. By focusing on this segment, it addresses a critical gap left by traditional financial institutions.
Currently operating across six Indian states, the lender has built a reputation for its disciplined underwriting and robust governance. Its business model is centered on prudent risk management, which has been key to its success. This approach allows it to build a resilient and scalable lending platform for long-term impact.
Leadership and Investor Perspectives
Ramesh Dugar, Founder and Managing Director, stated that the fundraise underscores the strength of the company's asset quality and disciplined execution. He affirmed that it validates partners' confidence in their long-term vision. Dugar also reiterated the firm's commitment to expanding financial access in regions with limited formal credit options.
From the lead investor's side, Prashant Bhardwaj of Symbiotics highlighted the deal's alignment with their organizational mission. He noted that the MSME-focused bond will increase funding for the "missing middle" segment of small businesses. This investment aims to foster sustainable development for enterprises in emerging and frontier economies.
Financial Prudence and Future Outlook
The company's commitment to sustainable growth is reflected in its strong financial metrics. Dugar Finance maintains a return on assets exceeding four percent while keeping its gross non-performing assets (NPAs) below two percent. These figures demonstrate the effectiveness of its prudent financial management and risk assessment strategies.
This successful $18 million debt round marks a significant milestone for Dugar Finance, positioning it for accelerated growth and deeper market penetration. The capital not only strengthens its financial base but also validates its impact-driven model of empowering small businesses. The company is now better equipped to advance its mission of fostering financial inclusion across India's emerging economic landscapes.