Mahaveer Finance India Ltd a non-banking financial company (NBFC) specialising in used commercial and passenger vehicle financing, has raised ₹200 crore led by Elevation Capital. The round also saw participation from existing investors BanyanTree Finance and First Bridge Capital.

The company will deploy the fundraise to deepen its presence in its strong hold markets in South India, expand its technological infrastructure, and help more customers who are currently underserved - lacking options besides informal moneylenders.

Mahaveer has evolved from a traditional vehicle financier into a niche NBFC with deep domain expertise. “From 50 crore, we grew to 1000 crore AUM based on geographical diversification and the product diversification as well,” said Deepak Dugar, Managing Director and CEO.

Mahaveer’s current customer base primarily consists of first-time vehicle buyers and owner-cum-drivers. With improved credit ratings and a lower cost of borrowing, the company is now expanding into SRTO (small road transport operators) and entering the secured MSME lending segment. “We are not interested in getting into the unsecured space at all,” Dugar emphasized.

Expansion strategy

The NBFC’s expansion strategy follows a “home state” model, currently spanning Tamil Nadu, Andhra Pradesh, Telangana—and now, cautiously—Karnataka. “We believe in the experiment, course correct, and then expand model,” said Praveen Dugar, Deputy MD and CFO.

The company has grown its network to over 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, and Puducherry, Karnataka serving more than 20,000 active customers.

Now, Mahaveer is gearing up for its next vertical: secured MSME lending, particularly loan-against-property products. The move comes even as many fintechs and NBFCs have focused on unsecured lending. “We are very clear as an ethos for Mahaveer—we believe that we want to make sure that we are only in the secured space,” Dugar added, signaling a cautious but deliberate shift.

Talking about the investment, Mridul Arora, Partner, Elevation Capital, said, “At Elevation, we continue to believe that expanding access to financial services is a foundational opportunity in India. Mahaveer Finance, with over four decades of experience in financing used commercial and passenger vehicles, has established a strong presence across Southern India through its extensive branch network. Their deep-rooted understanding of the needs of small road transport operators and commitment to serving underserved segments align well with our thesis on access driven financial services.”

Mahaveer Finance has cultivated relationships with over 40 lenders including State Bank of India, HDFC, AU Small Finance Bank along with a host of NBFC’s and AIF’s enabling diversified funding sources.

Published on June 19, 2025