Mahaveer Finance, a non-banking financial company (NBFC) that focusses on used vehicle financing, has raised Rs 200 crore as part of its Series C funding round led by venture capital firm Elevation Capital.

Existing investors BanyanTree Finance and First Bridge Capital also participated in the funding round, it said in a statement.

The fresh capital will be used to boost its presence in southern India, enhance its proprietary credit infrastructure, and expand its lending to underbanked customer segments.

Mahaveer Finance, which was founded in 1981, currently has 80 branches across Tamil Nadu, Andhra Pradesh, Telangana and Karnataka.

The company claims to have increased its loan book from Rs 50 crore in 2016 to Rs 1000 crore by 2025. It is aiming to grow to Rs 5000 crore in the next two to three years.

Mahaveer Finance said it clocked revenue of Rs 136 crore in FY24 and net profit of Rs 16 crore.

In 2024, the Chennai-based company had raised $7.8 million from homegrown private equity firm First Bridge and angel investors Deepak Dugar and Praveen Dugar. Previously, it had raised capital from BanyanTree Finance and BlackSoil.

The funding in Mahaveer Finance comes at time when NBFCs are said to be bracing for another year of tepid growth in disbursements and assets under management as their core commercial and passenger vehicles lending segment is expected to grow at a slower pace. 

According to ICRA, AUM of vehicle financing NBFCs is expected to grow 14-16% in FY26 as against an estimated 15-17% growth in FY25 and 23% growth recorded in FY24.