Leading Indian banks, including Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank, and STCI Finance, participated in a debt funding round led by Swiss investor Symbiotics, which helped Dugar Finance, an impact-led secured MSME lender, raise $18 million (roughly Rs 160 crore). In this round, Symbiotics made a $5.5 million contribution.
In June of this year, Symbiotics Investments issued a $75 million Green Basket Bond, which it used to raise $3 million in debt.
According to a press release from Dugar Finance, the additional funds will be used to bolster its secured MSME lending and assist its growth into Tier-2 to Tier-6 markets throughout India.
Under the direction of Ramesh Dugar, Dugar Finance is a non-deposit-taking, impact-focused NBFC that operates in several Indian states and has a significant presence in tier 3 and tier 4 markets. The company supports micro-entrepreneurs, small businesses, and first-time commercial vehicle drivers who are underserved by formal credit by providing secured MSME and commercial vehicle financing with the goal of generating income.
Dugar Finance prioritizes building a robust, scalable lending platform that will sustain long-term economic activity in India’s growth corridors. It also strives to further strengthen its institutional lender relationships through disciplined underwriting, strong governance, and prudent risk management.
Currently, the Chennai-based business serves semi-urban and rural clients in six states. It supports micro-entrepreneurs, small businesses, and first-time commercial vehicle drivers with its portfolio of income-generating secured MSME loans and commercial vehicle loans. By FY27 and FY29, it hopes to grow to over 75 branches and Rs 600 crore AUM and Rs 2,000 crore AUM, all the while maintaining its solid financial performance, which includes gross non-performing assets (NPAs) below 2% and a return on assets (RoA) above 4%.
