Chennai-based non-banking financial company (NBFC) Dugar Finance has raised $5 million (₹45 crore) in a Pre-Series A funding round led by HegdInvst, a Category II AIF focused on growth equity investments. The capital will support the company to scale its secured MSME lending franchise alongside its established vehicle finance business, and to deepen its presence across tier 2-6 underserved semi-urban and rural markets.

The company has previously raised approximately $18 million (₹160 crore) in structured debt from a mix of domestic and international lenders, including Symbiotics and British International Investment (BII), along with multiple Indian banks in December 2025.

The latest fundraise comes at a time when several NBFCs are recalibrating growth amid tighter liquidity conditions and rising credit costs. Dugar Finance is positioning itself for the next phase of calibrated expansion from a foundation of demonstrated credit discipline.

Ramesh Dugar, Founder and Managing Director, Dugar Finance said in a statement “We are entering the next phase of growth, where diversification and institutional disciplined scaling become critical. Vehicle finance gave us a strong foundation, and we are now leveraging that to build a broader secured lending platform.”
The fresh capital will be deployed across four key areas: strengthening technology infrastructure, advancing analytics-led underwriting and centralised risk systems, and hiring senior talent across critical functions.

Aditya Bhandari, Founder and Managing Partner, HegdInvst said in a statement “Dugar Finance combines a solid promoter group and a clear intent towards creating a professionally run NBFC focused on Tier 2 to 6 towns. We see significant potential in its strategy to scale a well governed & diversified secured lending platform.”

Economic Times Link