UGRO Capital Acquires MyShubhLife in a Strategic Rs 45 Crore Deal
- ByStartupStory | May 3, 2024
UGRO Capital has announced the acquisition of Bengaluru-based embedded finance platform MyShubhLife (MSL) for an enterprise value of Rs 45 crore. The deal, approved by UGRO’s board, combines cash and stock in a 64:36 ratio, making MSL a wholly-owned subsidiary of the financial giant.
MyShubhLife, known for its tailored financial solutions for small shopkeepers and distributors, provides a range of services including loans with daily and weekly installment options, overdraft facilities, and robust underwriting and distribution capabilities. This acquisition is set to bolster UGRO Capital’s offerings by integrating MSL’s innovative credit products with its extensive financial resources and technological prowess.
Monish Anand, Founder and CEO of MyShubhLife, expressed enthusiasm about the merger, stating, “UGRO is a lender which not only has access to an extensive balance sheet, but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation.”
UGRO Capital, a DataTech NBFC focusing on MSME lending, has seen substantial growth recently, reporting a nearly 50% increase in Assets Under Management, which stood at Rs 9,047 crore as of March 31, 2024. With MSL under its wing, UGRO plans to add an incremental AUM of Rs 1,500 crore over the next three years and aims to achieve a Profit After Tax (PAT) of Rs 100 crore.
MSL has previously demonstrated strong performance and potential in the MSME sector, having sourced over 15 million merchants. The company has established partnerships with prominent players like Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay for merchant financing. Post-acquisition, UGRO plans to onboard 200,000 new retailers within three years, leveraging MSL’s established network and capabilities.
In addition to loans, MyShubhLife offers savings products such as insurance, SIPs, e-gold, and e-filing of taxes. The company has attracted significant investment, raising $4 million in 2021 in a round led by Patamar Capital and securing Rs 100 crore from Gojo & Company, Inc., in 2022.
Further strengthening its financial position, UGRO also announced a capital raise of Rs 1,332.66 crore through Compulsory Convertible Debentures (CCD) and Warrants. Samena Capital, one of UGRO’s major private equity investors, has committed Rs 500 crore through Warrants, underscoring strong investor confidence in UGRO’s strategic direction and growth prospects.
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