Dugar Finance bags $18M debt led by Swiss impact fund Symbiotics
The round included participation from Indian lenders such as Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance, the company said in a statement.
Dugar Finance & Investments Ltd. has raised $18 million in a debt funding round led by Swiss-based impact investor Symbiotics. The non-bank lender said it is looking to expand secured lending to small businesses in India’s smaller towns.
The round included participation from Indian lenders such as Union Bank of India, Karur Vysya Bank, Indian Overseas Bank, Tamilnad Mercantile Bank and STCI Finance, the company said in a statement on Friday.
Symbiotics invested $5.5 million in the transaction, taking its total funding in Dugar Finance to $8.5 million, including a previously issued $3 million green bondraised earlier this year. The fundraise exceeded the company’s initial target of $12 million.
The latest capital will be used to support secured MSME lending and expand operations across Tier II to Tier VI markets, according to the statement. The company said it aims to scale to more than 75 branches and Rs 600 crore in assets under management by fiscal year 2027.
Dugar Finance currently operates in six Indian states, offering secured MSME loans and commercial vehicle financing to semi-urban and rural borrowers.
“This raise underscores the strength of our asset quality, governance, and disciplined execution,” Ramesh Dugar, Founder and Managing Director, said. “It affirms our partners’ confidence in our long-term vision and our commitment to expanding secured MSME and commercial vehicle finance in regions where formal credit remains limited."
Symbiotics said the funding aligns with its focus on expanding access to credit for underserved enterprises. “This MSME-focused bond will be used to increase access to funding for the missing middle MSME segment,” said Prashant Bhardwaj, Regional Manager for South Asia at Symbiotics. “The issuance of this bond is aligned with Symbiotics Investments’ mission to foster the sustainable development of MSMEs in emerging and frontier economies.”
A green bond is a debt instrument where the proceeds are earmarked exclusively for financing or refinancing environmentally sustainable projects, such as renewable energy or clean transportation.
Edited by Megha Reddy