Fintech Startup U GRO Secures $41.3 Mn To Offer Credit To MSMEs

Fintech startup U GRO Capital has secured INR 340 Cr ($41.3 Mn) from IFU and long-term shareholders. The startup’s board has approved a preferential allotment of INR 240 Cr to IFU (Investeringsfonden for Udviklingslande) via its Danish Sustainable Development Goals Investment Fund. 

Besides, the remaining INR 101 Cr came from shareholders including insurance companies, AIF, and other financial institutions via a qualified institutions placement (QIP).  

The startup said that the equity fund raise is subject to customary closing conditions, including regulatory and shareholder approvals.  

U GRO Capital will deploy funds for lending credit to the MSMEs segment. It will further increase focus on improving its balance sheet.

Founded in 2018 by Shachindra Nath, U GRO Capital is a lendingtech platform. The startup is listed on NSE and BSE stock exchanges.

“We have seen multiple fintech and NBFCs which were created as private ventures and then being floated in Public Market at significant premium, 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,” said, Shachindra Nath, vice chairman and managing director of U GRO Capital.

In 2018, its founder acquired listed NBFC ‘Chokhani Securities Limited’ and simultaneously raised over INR 900 Cr from NewQuest, PAG, ADV Capital, Sameena Capital and other domestic family offices and public market investors. 

In India, it competes with the likes of lendingtech startups such as Lendingkart, InCred, LoanTap, CredAble, Money View among others.

According to an Inc42 report, the country’s fintech market is anticipated to become a $1.3 Tn market opportunity by 2025. Of this, lendingtech is a subsector, which is expected to account for $616 Bn by the forecasted period. 

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