Mumbai: UGRO Capital Limited (NSE: UGROCAP I BSE: 511742), which was formed as a lending FinTech in July 2018 as a listed entity by raising approximately INR 900+ Cr of Equity Capital, today announced its second capital raise since inception. UGRO Capital’s Board of Directors have approved a preferential allotment of INR 240 Cr 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 Cr from long term shareholders like insurance companies, AIF, and other financial institutions through a Qualified Institutions Placement (QIP) of up to INR 101 Cr.
Preferential Allotment: UGRO Capital has entered into a definitive investment agreement with IFU. IFU is an independent Denmark government-owned fund offering risk capital to companies in developing countries and emerging markets is the Danish Development Finance Institution and an impact investor which invests to support sustainable development in developing countries and contribute to the realization of the SDGs by creating better opportunities for people in low and middle-income countries. The growth capital from the funds raised will primarily be used for onward lending, this shall assist the MSME segment and take credit to the last mile. This capital raise will further enhance UGRO Capital’s strong capital position and strengthen the balance sheet.
Commenting on the fund-raising announcement, Mr. Shachindra Nath, Vice Chairman and Managing Director, UGRO Capital said, “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.
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.”
UGRO Capital Raise Background: UGRO Capital was envisaged to be built as India’s largest small business financing platform combining the power of Data & Tech and was uniquely created as India first listed startup. In 2018, its founder Mr. Shachindra Nath, acquired control of a small listed NBFC ‘Chokhani Securities Limited’ and simultaneously raised capital institutional equity capital from likes of TPG – NewQuest, PAG, ADV Capital, Sameena Capital and other domestic family offices and public market investors. This in 2018 was one of the largest capital raises for a listed company at a startup stage.
UGRO Capital, over the last 4 years in spite of broader challenges to the lending industry has successfully built an AUM of INR 6,000+ Cr and with a monthly disbursement of more than INR 500 Cr as of March 2023. It 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 have recently launched GRO X platform for a fully digital credit through UPI platform.
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