Dugar Finance Raises $3 Million to Boost EV, Solar Lending
Dugar Finance and Investments Limited, a Chennai-headquartered non-banking financial company (NBFC), has secured $3 million via Symbiotics’ Green Basket Bond program. This significant funding is set to enhance Dugar Finance’s focus on supporting electric vehicle (EV) and rooftop solar loan segments, particularly in underserved markets.
About the Green Basket Bond
The Green Basket Bond, launched by Symbiotics Investments, is a $75 million investment instrument dedicated to promoting sustainable finance. The bond is specifically designed to channel funds into climate-positive initiatives across emerging economies. Notably, this bond is backed by the British International Investment (BII), the UK’s development finance institution, which is actively investing in green financial instruments to address global climate change challenges.
Dugar Finance’s participation in this bond positions it as a key player in sustainable lending, with a sharp focus on sectors contributing to environmental improvements. The company plans to deploy the newly acquired funds towards expanding its green loan portfolio, particularly targeting electric mobility and solar energy solutions.
Targeting Underserved Markets
A significant aspect of Dugar Finance’s strategy involves concentrating its efforts on customers in India’s tier-II and tier-III cities. These areas, often overlooked by large financial institutions, hold untapped potential for sustainable growth. The company will offer tailored financial products to residential customers, micro, small, and medium-sized enterprises (MSMEs), and housing societies.
By extending affordable loans for EV purchases and rooftop solar installations, Dugar Finance aims to bridge the gap in green financing access. The company’s approach aligns with national and global efforts to foster cleaner transportation and energy solutions at the grassroots level.
Environmental and Financial Impact
The impact of Dugar Finance’s green lending strategy is already visible. To date, the company has financed approximately 1,200 customers who have either installed rooftop solar systems or purchased electric vehicles. These initiatives have collectively contributed to reducing carbon emissions by an estimated 3,000 tonnes.
Furthermore, the customers supported by Dugar Finance have reported total annual electricity savings of nearly ₹2.96 crore. Such tangible benefits underline the dual value of the company’s financial products—promoting environmental sustainability while delivering direct economic advantages to consumers.
Leadership Insights
Ramesh Dugar, the Founder and Managing Director of Dugar Finance, highlighted the importance of this strategic funding. According to him, the funding from Symbiotics is more than just financial support; it serves as a validation of the company’s vision to integrate sustainability with financial inclusion.
“This investment reflects our dedication to developing financial solutions that not only promote expansion but also actively support environmental progress. We are proud to be part of the global green finance movement that is reshaping the future of energy and transportation,” said Dugar.
His remarks reflect the company’s broader mission to empower smaller businesses and individual customers while simultaneously contributing to India’s renewable energy targets and green mobility transition.
Driving Sustainable Finance in India
Dugar Finance’s collaboration with Symbiotics, backed by BII, underscores the rising significance of green finance within India’s transforming financial sector. The company’s efforts align with the Indian government’s push to encourage electric mobility and the adoption of renewable energy sources to combat climate change.
Financial institutions like Dugar Finance are playing a pivotal role in enabling this transition by offering accessible financing options tailored to the unique needs of emerging markets. Their focus on underpenetrated regions and smaller customer segments is helping democratize the benefits of sustainable technology adoption.
Expanding the Green Footprint
Looking forward, Dugar Finance aims to steadily expand its green lending programs. The company will actively seek further partnerships and investments that support its vision of broadening financial inclusion through environmentally responsible financing.
With a defined path for growth and a solid history of delivering results, Dugar Finance stands ready to advance India’s sustainable development objectives. By offering affordable, targeted loan products for EVs and rooftop solar systems, the company is empowering consumers and small businesses to participate in the green revolution.
Conclusion
Dugar Finance’s achievement in raising $3 million via Symbiotics’ Green Basket Bond highlights the growing international emphasis on funding initiatives that promote environmental sustainability. By channeling these funds into electric vehicle and rooftop solar financing, especially in underserved regions, the company is setting a strong example of how NBFCs can lead in the sustainable finance sector.
This initiative not only strengthens Dugar Finance’s market position but also accelerates the transition towards cleaner energy and transportation in India. As green finance continues to gain momentum, Dugar Finance’s proactive approach serves as a blueprint for inclusive and sustainable economic growth.
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