Mahaveer Finance Secures INR 20 Cr From Blacksoil Capital The company aims to serve the gaps in the used commercial vehicle market retail segment and first-time buyers/new to credit buyers

By Prabhjeet Bhatla

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Unsplash

Chennai-based asset financing non-banking financial company (NBFC) Mahaveer Finance, on Tuesday, announced to have raises INR 20 crore bridge equity through structured funding from Mumbai-based Blacksoil Capital before its Series C funding of 100 crore in the current year. The funds will be utilized to achieve its target AUM of INR 500 crore for the year.

The company aims to serve the gaps in the used commercial vehicle market retail segment and first-time buyers/new to credit buyers, where most of the large players in used commercial vehicle finance cater to large fleet operators.

"We heartily appreciate the quick turn-around time, prompt decision making, and well supportive team from Black Soil which helped us close this within committed timelines. The fund infusion would strengthen the firm's balance sheet and will enable us to tap growth opportunities that continue to emerge in the current market towards our larger goal of INR 2000 crore in the next 3 years. This transaction will be a stepping-stone for the upcoming Series C INR100 crore fundraise. After our first round by BanyanTree in 2018, we have grown the book from INR 50 - 300 crore and the current round from BlackSoil will help us achieve INR 500 crore," Praveen Dugar, promoter, Mahaveer Finance.

All loans are secured, livelihood financing enabling self-employment/micro-entrepreneurship. Typical loan-to-value (LTV) is conservative at 70-80 per cent, which ensures that borrowers have a significant equity investment in the vehicle leading to superior credit outcome. The company has built in-house capabilities for end-to-end processes starting from loan origination to recovery. The company claimed to have recorded a 48 per cent year-on-year (y-o-y) growth from INR 30 crore in FY15 to a present portfolio of ~INR 300 crore with over 11,000 active customers.

"The company has established rigorous credit controls, portfolio monitoring systems, and loan recovery systems, which reflects in its Gross NPA levels, which is at par with industry benchmarks. The company has also shown strong resilience during COVID times while dealing with the customer segment which was among the most impacted due to the lockdown restrictions. Based on this, we strongly believe in their business model and scalability. We look forward to supporting them in growing their portfolio and expanding their presence," stated Ankur Bansal, co-founder, Blacksoil Capital.

Blacksoil's past deals include OYO, Spinny, Purplle, Zetwerks, Vogo, LetsTransport, EarlySalary, and iNurture amongst others. Blacksoil has recently raised INR 126 crore for the first close for its maiden secured credit fund.

Founded in 1981, the company has raised over INR 350 crore of debt from over 26 relationships which are well-diversified with PSU Bank, Private Banks, AIFs & NBFCs. Recently Company has raised INR 50 Crore of TLTRO funding from its PSU Bankers.

Prabhjeet Bhatla

Former Staff

Business News

Over 1,300 Google Employees Have Signed a New Petition Asking For Job Security

Google laid off thousands of employees in the past two years, which has left some employees feeling insecure about keeping their jobs.

Marketing

7 Local SEO Strategies I've Used to Help Businesses Boost Their Revenue 10x — Especially Blue-Collar Companies

Discover actionable local SEO strategies for service-based businesses like pest control or auto glass repair. Boost visibility, reviews and leads with these tips.

News and Trends

Semiconductor Firms Race to Secure Supply Chains Amid Growing AI Chip Demand

Currently only two in five semiconductor firms are confident in their supply chain's robustness. To mitigate risks, companies are shifting towards domestic and regional sourcing

Business News

Barbara Corcoran Says She Doesn't Look at Resumes: 'Always Hire Attitude Over Experience'

If you think you need a strong resume to work with real estate pioneer Barbara Corcoran, think again.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

Business Solutions

Business Owners are Cancelling Their OpenAI Membership for This Less Expensive Alternative

1min.AI gives you lifetime access to GPT-4o, Midjourney, Gemini, and more with no recurring costs.