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U GRO Capital Raises $30 Million From ADB

U GRO Capital secured funding, following the Rs 340 crore ($41.3 million) raised from Denmark government’s development financial institution and long-term shareholders a few months ago

U GRO Capital Raises $30 Million From ADB
POSTED ON January 31, 2024 4:29 PM

U GRO Capital, a datatech NBFC focused on MSME lending, has raised Rs 2,500 million through Non-Convertible Debentures (NCDs) from the Asian Development Bank (ADB).  

The company had received financing of Rs 2,500 million through Non-Convertible Debentures (NCDs) from FMO, the Dutch entrepreneurial development bank in December 2023 as well. 

The NBFC has provided credit to approximately 90,000 small businesses, the company added in a statement. 

U GRO Capital has an asset under management of Rs 83,638 million as of December 2023. Over the last 5 years, it has raised a total of Rs 91,378 million in Equity and Debt from diverse institutional investors. 

Shachindra Nath, founder and managing director of U GRO Capital, expressed his views on the collaboration, stating, “We share a common vision of financial inclusion with impact funding organizations and are excited to collaborate with ADB to meet the diverse financial needs of India's underserved MSMEs. Impact investors are critical funding partners in enabling us to bridge India's massive credit gap in the MSME sector, and we will continue to leverage our technology and credit expertise to service MSMEs across the spectrum via our multi-channel distribution model.”  

Suzanne Gaboury, ADB director general for private sector operations, emphasised the significance of the partnership, saying, “MSME Finance is a key driver for financial inclusion, and U GRO Capital’s 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.” 

Founded in 2018 by Shachindra Nath, U GRO Capital is listed on the NSE and the BSE. It Recorded a Rs 28.9 crore profit in Q2 FY23-24, Marking a 14 per cent growth from the previous quarter's Rs 25.2 crore Profit.   

Supported by prominent institutional investors, the company secured Rs 900 crore in equity capital in 2018 and an additional Rs 340 crore in 2023, last year. With a strategic goal, it aims to achieve a 1 per cent market share within the next three years. 

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