Funding Alert

U GRO capital gets funding of RS 138 cr from responsAbility

• ByStartupStory     |    February 8, 2022

U GRO Capital got Rs 138 crore from funds managed/ advised by Switzerland-based ResponsAbility investors for its first impact-oriented debt investment.

The ECB deal was carried out using an innovative social bond structure developed by the Swedish International Development Agency (SIDA), responsAbility, and Danske Bank in order to raise $177.5 million in borrowed financing from private institutional investors. These organizations teamed up to support the UN 2030 agenda’s Sustainable Development Goals by launching a social bond that bundles loans to innovative companies in capital-scarce regions that operate in the financial intermediation, healthcare and WASH (water, sanitation, and hygiene), agriculture, and climate finance sectors and have a measurable, positive social impact.

The earnings would be used to provide critical capital to India’s Micro, Small, and Medium Enterprises (MSME) sector. In a major economy characterized by a huge credit deficit for Small and Mid-Sized Enterprises that hampers job creation, promotes inequality, and stifles economic growth, financing to U GRO Capital contributes directly to UN Sustainable Development Goals (SDGs).

U GRO Capital now operates 75 locations in nine states. It plans to increase its network of branches to 100 by FY2022 plus target 250,000 MSMEs within the next four years.

 

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