Mahaveer Finance obtains 20 Cr INR from Blacksoil Capital
The company aims to fill the gap in the retail segment of the used commercial vehicle market and first-time buyers / new buyers credit
April 6, 2021
3 min read
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Mahaveer Finance, a Chennai-based non-bank asset finance company (NBFC), announced on Tuesday that it had raised INR 20 crore bridge equity through structured finance from Mumbai-based Blacksoil Capital prior to its funding of Series C of 100 crore in the current year. The funds will be used to meet his AUM goal of INR 500 crore for the year.
The company aims to fill the gap in the retail segment of the used commercial vehicle market and first-time buyers / new buyers of credit, where most of the major players in used commercial vehicle financing are targeting large fleet operators.
“We warmly appreciate the quick response time, the quick decision making and the well-supported Black Soil team who helped us bring this to a close on time. The infusion of funds would strengthen the company’s balance sheet and allow us to exploit the growth opportunities that continue to emerge in the current market to meet our broader target of INR 2000 crore over the next 3 years. This deal will be a springboard for the next Series C INR 100 crore fundraiser. After our first round of BanyanTree in 2018, we have increased the pound from INR 50 to 300 crore and the current round of BlackSoil will help us reach 500 crore. crore INR ”, Praveen Dugar, promoter of Mahaveer Finance.
All loans are secured, with livelihood financing enabling self-employment / micro-entrepreneurship. The typical loan-to-value (LTV) is 70-80 percent conservative, ensuring borrowers have a significant equity investment in the vehicle leading to a superior credit score. The company has developed internal capabilities for end-to-end processes, from loan creation to collection. The company claimed to have experienced 48% year-over-year (year-on-year) growth from INR 30 crore in FY15 to a current portfolio of ~ INR 300 crore with over 11 000 active customers.
“The company has rigorous credit controls, portfolio monitoring systems and loan collection systems in place, which is reflected in its gross PAD levels, which are on par with industry benchmarks. . The company has also shown strong resilience during COVID times while addressing the customer segment that was among the hardest hit due to the lockdown restrictions. Based on this, we strongly believe in their business model and scalability. We look forward to helping them grow their portfolio and expand their presence, ”said Ankur Bansal, co-founder of Blacksoil Capital.
Blacksoil’s past deals include OYO, Spinny, Purplle, Zetwerks, Vogo, LetsTransport, EarlySalary, and iNurture, among others. Blacksoil recently raised INR 126 crore for the first close of its first secured credit fund.
Founded in 1981, the company has raised over INR 350 crore in debt from over 26 well-diversified relationships with the PSU bank, private banks, AIFs and NBFCs. Recently, the company raised INR 50 crore of TLTRO funding from its PSU bankers.