UGRO Capital Limited Announces Equity Capital Raise Of INR 340 Crore The equity fund raise is subject to customary closing conditions, including regulatory and shareholder approvals
By Teena Jose
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UGRO Capital Limited, which was formed as a lending fintech in July 2018 as a listed entity by raising approximately INR 900 crore of Equity Capital, has announced its second capital raise since inception. UGRO Capital's Board of Directors has approved a preferential allotment of INR 240 crore to IFU (Investeringsfonden for Udviklingslande) through its Danish Sustainable Development Goals Investment Fund K/S. The equity fund raise is subject to customary closing conditions, including regulatory and shareholder approvals. UGRO Capital is simultaneously raising up to INR 101 crore from long term shareholders like insurance companies, AIF, and other financial institutions through a Qualified Institutions Placement (QIP) of up to INR 101 crore.
"It was our desire to create an Institutionally Owned, Independently Supervised and Professionally managed FinTech in the listed world so that the opportunity is available to the large universe of Public Market Institutional Investors, HNIs, AIFs, PMS and Retail Investors. We intent to gain 1% market share with 1 million small businesses – it has been our endeavour to change the life of small businesses and having a global development financial institution like IFU as a partner would help us achieve our mission with an accelerated pace," said Shachindra Nath, vice-chairman and managing director, UGRO Capital.
UGRO Capital, over the last 4 years in spite of broader challenges to the lending industry has successfully built an AUM of over INR 6,000 crore and with a monthly disbursement of more than INR 500 crore as of March 2023, claimed by the company in a statement.
Founded in 2018 by Shachindra Nath, UGRO Capital has truly demonstrated the power of Lending as a Service (LaaS) by being one of the most preferred partners for Banks for Co Lending. Its unique Data driven GRO Score is a leading platform for accessing the credit for small businesses in India and has recently launched GRO X platform for a fully digital credit through UPI platform.
