UGRO Capital Raises INR 250 Crore from Asian Development Bank to Bolster MSME Financing

• ByStartupStory     |    February 1, 2024

Leading small business-focused fintech platform, UGRO Capital, has successfully secured INR 250 crore ($30 million) through Non-Convertible Debentures from the Asian Development Bank (ADB), reinforcing its commitment to empower Micro, Small, and Medium Enterprises (MSMEs) in India.

The funding injection from ADB will be strategically employed by UGRO Capital to further enhance its technological infrastructure and credit expertise. The objective is to expand its multi-channel services catering to the diverse needs of MSMEs across various sectors, ultimately fostering inclusive and sustainable economic prosperity.

Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the pivotal role of MSME finance in driving financial inclusion. “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 Gaboury. “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.”

As of December 2023, UGRO Capital boasts an impressive asset under management of INR 8,363 crore and has successfully raised a total of INR 9,137 crore in equity and debt over the past five years. In December 2023, the company secured an additional INR 2,50 crore in financing from FMO, a Dutch entrepreneurial development bank.

UGRO Capital, listed on both the NSE and BSE, has emerged as a datatech lending platform committed to addressing the credit gap prevalent among small businesses in India. The company’s data analytics and technology architecture enable customized sourcing platforms for each channel, including GRO Plus, GRO Chain, GRO Xstream, and GRO X application.

Over the past five years, UGRO Capital has provided financial support to approximately 90,000 small businesses, solidifying its position as a key player in the MSME financing landscape. Backed by institutional investors, the company has set an ambitious goal to capture a 1% market share over the next three years.

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