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MSME-focused NBFC UGRO Capital secures Rs 250-Cr from ADB

UGRO Capital, a fintech firm focusing on small businesses, has secured Rs 250 crore ($30 million) through Non-Convertible Debentures from the Asian Development Bank (ADB).

The funding will be used to enhance its technology and credit capabilities further, enabling the provision of multi-channel services to MSMEs across various sectors.

With an asset under management of Rs 8,363 crore as of December 2023, UGRO Capital has raised Rs 9,137 crore in equity and debt over the past five years. In December 2023, the company also received Rs 250 crore in financing from FMO, a Dutch entrepreneurial development bank.

MSME Finance is a key driver for financial inclusion, and our mission to solve the small business credit need is in line with our vision of promoting inclusive and sustainable prosperity in Asia and the Pacific,” said Suzanne Gaboury, ADB Director General for Private Sector Operations. 

“We are confident that together we will positively impact the lives of MSME borrowers. This collaboration is consistent with our commitment towards greater financial inclusion in India,” he added.

UGRO Capital has provided loans to approximately 90,000 small businesses in the last five years. Listed on the NSE and BSE, UGRO Capital operates as a datatech lending platform, addressing the credit gap for small businesses in India.

According to a statement, the company utilizes data analytics and advanced technology to develop customized sourcing platforms for channels such as GRO Plus, GRO Chain, GRO Xstream, and GRO X application.

Institutional investors support UGRO Capital and aim to capture a 1% market share within the next three years.

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