Ugro Capital to Raise Rs 340 Cr in Equity Capital for Small Businesses Focused Fintech in Mumbai
- ByStartupStory | April 12, 2023
Small companies are primarily fintech On Tuesday, Ugro Capital announced that it would raise Rs 340 crore in equity capital through a qualified institutional placement and preferential allotment. The business claimed that its board had approved the preferential allocation of shares worth Rs 240 crore to the Danish investment fund for sustainable development, IFU (Investeringsfonden for Udviklingslande). Through a qualified institutional placement, an additional Rs 101 crore will be raised from long-term investors like insurance companies, AIFs, and other financial institutions. When the money will be raised was not specified.
The business has already signed a legally binding investment agreement with IFU, a government-owned fund in Denmark that provides risk capital to businesses in emerging markets and developing nations. According to Ugro Capital vice chairman and managing director Shachindra Nath, the new fundraising, its second equity capital raising after the first round in 2018, when it had collected Rs 900 crore, will be used primarily for forward lending to MSMEs. Through a reverse merger with the publicly traded Chokhani Securities, Ugro launched its operations in April 2018. To do so, it raised equity funding from companies like TPG, NewQuest, PAG, ADV Capital, Sameena Capital, and some family offices. As of March 2023, its loan book had a value of over 6,000 crore rupees and a run-rate of 500 crore rupees per month.
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