Mahaveer Finance Secures Rs 200 Crore in Funding

Mahaveer Finance, a notable non-banking finance company (NBFC) based in Chennai, has successfully secured Rs 200 crore (approximately $23.1 million) during an equity funding round spearheaded by Elevation Capital. This funding round also included contributions from Banyan Tree Finance and First Bridge Capital.

Previous Funding Rounds and Future Plans

The company had previously garnered Rs 75 crore ($9 million) through two funding rounds facilitated by Banyan Tree and First Bridge. The fresh funding will primarily be channelled towards enhancing its governance framework, investing in advanced technology, and scaling its operational capacity.

Growth and Diversification of Services

Under the guidance of Praveen Dugar, Mahaveer Finance has been pivotal in providing credit for used commercial and passenger vehicles. The company is now poised to further diversify its portfolio by introducing new financial products, including loans against property (LAP).

Ambitious Targets Ahead

Mahaveer Finance aims to expand its loan book significantly, projecting growth from Rs 50 crore in 2016 to Rs 1,000 crore by 2025. The goal has now been set to increase this to Rs 5,000 crore in the next two to three years. The company maintains robust partnerships with lenders like State Bank of India, HDFC Bank, and AU Small Finance Bank.

Monthly Disbursement and Financial Performance

Currently, Mahaveer Finance is disbursing between Rs 75–80 crore monthly, with aspirations to reach Rs 100 crore by the end of FY25. For FY24, the company reported a revenue of Rs 136 crore and a net profit of Rs 16 crore.

Operational Reach and Expansion Plans

Operating from Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka, Mahaveer Finance currently has 80 branches. Plans are in place to elevate this number to over 100 by the end of the current year. Additionally, the company intends to provide business loans through a branch-led model, with average ticket sizes ranging from Rs 10–15 lakh.