U GRO Capital has secured a significant investment of $30 million (approximately Rs 250 crore) from FMO, the Dutch Entrepreneurial Development Bank. This transformative move marks a pivotal moment in the mission to fortify the country’s MSME sector, underscoring U GRO Capital’s commitment to empowering small enterprises across India.
The MSME lender, has recently secured a significant investment of $30 million (approximately Rs 250 crore) from FMO, the Dutch Entrepreneurial Development Bank, through Non-Convertible Debentures (NCDs). Confirming the transaction, the company highlighted FMO’s complete subscription to the INR-denominated NCDs.
Shachindra Nath, Founder and Managing Director of U GRO Capital, expressed enthusiasm about this collaboration, stating, “This transaction is proof of U GRO Capital’s ability to forge partnerships with and attract funding from reputed global DFIs. We share a common vision of financial inclusion with impact funding organizations and are excited to collaborate with FMO to meet the diverse financial needs of India’s underserved MSMEs.”
Nath emphasized the critical role of impact investors, highlighting their significance in bridging India’s substantial credit gap in the MSME sector. He reiterated the company’s commitment to leveraging technology and credit expertise to cater to MSMEs through a comprehensive multi-channel distribution model.
Notably, U GRO Capital has cultivated partnerships with over 10 large PSUs and NBFCs, employing a lending-as-a-service model. The company relies on data analytics, AI/ML statistical models, and its proprietary credit scoring model, GRO Score, to assess risk. Additionally, it offers various modules such as GRO Plus for intermediated sourcing, GRO Chain for supply chain financing, GRO Xstream for co-lending, and GRO X for embedded financing aimed at MSMEs.
U GROW Capital aims to solve small business credit need
Aleksandra Gazy, Senior Investment Officer at FMO, expressed FMO’s satisfaction in collaborating with U GRO Capital, citing, “MSME Finance is a key driver for financial inclusion, and U GRO Capital’s mission to solve the small business credit need is in line with our vision of promoting inclusive and sustainable prosperity.”
The latest financial report from U GRO Capital revealed a significant upsurge in assets under management, reaching Rs 7592 crore for the quarter ending September 2023, marking a substantial 74% increase from the corresponding period in the previous year.
The company also reported monthly disbursals exceeding Rs 500 crore, indicating robust growth. Furthermore, their profit after tax for the quarter surged impressively by 448% from the year-ago quarter, reaching Rs 28.9 crore.
