UGRO Capital Boosted by Asian Development Bank, Raises ~INR 2,500 Million for Last Mile MSME Empowerment

UGRO Capital, a prominent DataTech NBFC specializing in MSME lending, has achieved a significant milestone by securing approximately INR 2,500 million through Non-Convertible Debentures (NCDs) from the esteemed Asian Development Bank (ADB). This investment reflects ADB’s firm dedication to promoting inclusive, resilient, and sustainable prosperity by supporting small businesses at the grassroots level.

In December 2023, UGRO Capital had previously obtained a financing of INR 2,500 million through NCDs from FMO, the Dutch entrepreneurial development bank. Over the past five years, UGRO Capital has played a crucial role in narrowing the credit gap within India’s MSME sector, extending credit to around 90,000 small businesses. A recent survey indicated that 94% of participants witnessed business growth, with a notable 36% increase in employment after availing loans from UGRO, highlighting the tangible impact on economic growth and job creation.

As of December 2023, UGRO Capital manages assets worth INR 83,638 million. In the last five years, it has raised a total of INR 91,378 million in equity and debt from diverse institutional sources, showcasing its ability to attract institutional equity investors and diversified debt providers across various categories. This positions UGRO as a scalable financial institution catering to the needs of MSME borrowers in India.

UGRO Capital’s commitment to India’s Micro Enterprises, coupled with its technology-driven credit expertise, has established the company as a reliable partner for global DFIs. This strategic diversity ensures that the NBFC’s liability is well-distributed, not solely dependent on the Indian banking system.

Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed satisfaction with the collaboration, stating that the transaction underscores UGRO Capital’s ability to form partnerships and attract funding from reputable global DFIs. He emphasized the common vision of financial inclusion with impact funding organizations and highlighted the importance of impact investors in bridging India’s significant credit gap in the MSME sector.

Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the significance of the partnership, expressing pleasure in collaborating with UGRO Capital to empower MSMEs in India. She stated that MSME Finance is a crucial driver for financial inclusion, aligning with ADB’s vision of promoting inclusive and sustainable prosperity in Asia and the Pacific. Gaboury expressed confidence that the collaboration will positively impact the lives of MSME borrowers, aligning with ADB’s commitment to greater financial inclusion in India.