The latest capital injection is aimed at deepening the company’s presence across South India, expanding its technology infrastructure, and improving access to formal credit for small entrepreneurs currently reliant on informal moneylenders, the company said in a statement.
“This funding milestone validates our four-decade journey of serving the underbanked segments of India’s economy,” said Deepak Dugar, CEO and Managing Director of Mahaveer Finance. “With Elevation Capital’s partnership and our existing investors’ continued confidence, we are well-positioned to scale our proven business model across new geographies while maintaining the current credit approach that has delivered consistent profitability.”
Founded in 1981, Mahaveer Finance specialises in financing used commercial and passenger vehicles, targeting first-time buyers and small fleet operators in Tier II to Tier V markets. The company has grown its assets under management (AUM) from Rs 50 crore in 2016 to approximately Rs 1,000 crore today.
“The best validation of a business is to earn the respect of your competitors and to us, it is personally satisfying to have onboarded every noteworthy vehicle financier in the country on our lender list,” said Praveen Dugar, CFO and Deputy Managing Director. “Our focus remains on empowering small business owners and first-time vehicle buyers who form the backbone of India’s commercial transportation ecosystem.”
Mahaveer Finance operates over 80 branches across Tamil Nadu, Andhra Pradesh, Telangana, Puducherry, and Karnataka, serving more than 20,000 active customers. The company credits its profitability to the efficient deployment of proprietary technology, including a custom credit engine, SURETY, and an in-house loan origination system. According to the company, its tech stack has contributed to low credit costs, higher employee productivity, and a shift away from cash collections, which have dropped to low double digits.
“At Elevation, we continue to believe that expanding access to financial services is a foundational opportunity in India,” said Mridul Arora, Partner at Elevation Capital.
“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.”
The company’s business model focuses on markets often overlooked by traditional banks, using decentralised, tech-enabled underwriting to serve new-to-credit customers and first-time vehicle owners.
Mahaveer’s lender base includes over 40 institutions, among them State Bank of India, HDFC Bank, AU Small Finance Bank, and several alternative investment funds and NBFCs.
Discover more from News Hub
Subscribe to get the latest posts sent to your email.
