New Delhi, Oct. 22 -- Nagpur-headquartered non-banking lender Berar Finance has raised Rs 150 crore (around $17 million) led by Norwegian Fund Abler Nordic, along with participation from First Bridge India Growth Fund, according to a press note.

The latest fund raise provided a partial exit for the company's first institutional investor Amicus Capital.

InteQuant Advisors acted as the exclusive financial advisor to Berar Finance Limited and its shareholders on this transaction.

The latest announcement confirms VCCircle's report that Berar Finance is looking to raise capital via a mix of primary and secondary transactions, and also looking to bring new names on the captable.

Berar Finance said it plans to utilise the latest capital to deepen its presence in the two-wheeler financing segment and expand its secured micro, small and medium enterprises (MSME) loan portfolio.

"Our goal is to evolve into a multi-product NBFC with a strong emphasis on growth, profitability, and asset quality. With the support of our new investors, we are well-positioned to build on the robust foundation we have established over the years," Sandeep Jawanjal, managing director of Berar Finance said.

Vehicle finance

Incorporated in 1990, Berar Finance is promoted by Maroti Gendaru Jawanjar. Apart from Amicus, Berar Finance also counts impact investment firms Maj Invest and Creation Investments in its cap table.

Berar Finance primarily finances two-wheelers (2Ws), which includes refinancing. The company has also forayed into secured MSME loans which is at a nascent stage.

The company's net profit rose to Rs 32.3 crore in the financial year ended March 2025 from Rs 22.2 crore a year ago, aided by a growth in assets under management.

The gross asset under management rose to Rs 1,383 crore as on March 31 from around Rs 1,118 crore a year ago. The company disbursed Rs 1,175 crore in FY25.

The gross non-performing asset ratio remained high at 4.4% as on March 31, albeit improving from 4.6% a year ago.

Many analysts note that the company's comfortable capitalisation and experienced promoters work in its favour. On the other hand, a significant weakening in the asset quality and its impact on future earnings is a possible downside risk.

Published by HT Digital Content Services with permission from VC Circle.