U GRO Capital Ltd. Raises Impact Funds of $5 Mn in Partnership with Swiss-based Enabling Qapital

U GRO Capital has raised funds of USD 5 million through an ECB (external commercial borrowings) transaction with the EMF Microfinance Fund AgmvK (EMF). U GRO Capital, a listed entity that operates a Fintech lending platform for MSMEs (Micro, Small and Medium Enterprises), will be leveraging the funds to extend credit to India’s underserved business sections.

EMF was founded in 2008 as an instrument to catalyse access to capital where it is needed most and to promote financial inclusion to people in developing economies. Enabling Qapital (EQ), a Swiss impact-focused investment advisory and the exclusive advisor to EMF, acted as the chief facilitator for the funding round. The transaction took four months for closure with synergistic collaboration by all parties.

Expressing happiness at the conclusion of the exercise, Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital said, “We share a common vision of financial inclusion with impact funding organisations such as EQ. The partnership furthers our purpose to serve India’s underserved business segments. Impact investors are critical funding partners to enable us bridge the enormous credit gap in India’s MSME sector. We will continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model.”

Chuck Olson, Managing Partner, Enabling Qapital further elaborated, “MSME Finance is a key driver for financial inclusion, and we are excited to partner with U GRO Capital in our endeavour to move money to meaning. We are confident that U GRO will enable us to positively impact the lives of MSME borrowers. The association will help strengthen our commitment towards greater financial inclusion in India.”

Contributing to the UN Sustainable Development Goals (SDGs) that outline reducing inequality and promoting inclusive growth as key goals, the proceeds from this partnership serve as a crucial credit link for India’s MSME segment. This fuels economic elevation through boosting business, accelerating job creation and promoting equality in distribution of opportunities.

About U GRO Capital Ltd.

U GRO Capital limited is an MSME-focused lending fintech platform. U GRO Capital’s mission is to ‘Solve the Unsolved’ by providing small businesses with much-needed credit. U GRO operates with an omnichannel distribution model combining physical and digital customer journeys. The company envisions to spearhead the transition of India’s MSME lending market to the new age of on-tap financing. It uses the emerging data tripod of GST, banking and bureau coupled with sectoral analysis to solve the problem of credit for small businesses.

U GRO Capital currently has 75 branches across 9 states. It aims to expand the branch network to 100 by FY2022 and intends to reach 250,000 MSMEs in the coming 4 financial years.

About Enabling Qapital

Enabling Qapital Ltd. (EQ) is a leading Impact Investment Advisory Company dedicated to a world where investments provide a financial and social return and have a positive economic, social, and environmental impact. EQ is a certified B Corp, the gold standard for environmental and social certifications. EQ currently advises over USD 500 million in assets within the EMF Microfinance Fund AGmvK (EMF) and the Spark+ Africa Fund (in cooperation with the Clean Cooking Alliance from the UN Foundation). EQ has approximately 50 team members based in Switzerland, Ecuador, India, Kenya, Kyrgyzstan, Liechtenstein, Mexico, Philippines, Pakistan and the United States in order to better understand local markets and be able to offer access to our services globally.

U GRO Capital's AUM Crosses INR 3,650 crore, with highest ever disbursement of INR 1,350 crore in Q1 FY23

• Off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022)
• Pioneered ‘Lending as a Service’ model backed by robust data and technology architecture
• Customer base at 25,000+ as of June 30, 2022

U GRO Capital, a listed, MSME lending fintech platform, continues its growth momentum with an AUM of INR 3,656 crore as of June 30, 2022 (+166% compared to June 30, 2021) and is on track to cross the mark of INR 7,000 crore AUM by March 2023.

The company has effectively demonstrated the power of co-lending, after having kicked off this stream by experimenting with top Public Sector Banks. The current off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022). The company aims to grow its loan book under co-lending partnerships by 3X to over INR 2,000 crore by March 2023.

U GRO Capital has pioneered ‘Lending as a Service (LaaS)’ model and is revolutionizing MSME lending through its data analytics prowess and robust technology architecture. As a testimony to the same, U GRO Capital’s proprietary scoring model (GRO Score) has successfully processed 21,000+ applications, 67,000+ bureau records, 45,000+ bank statements and 14,500+ GST records in the last one year.

Key performance highlights for Q1 FY23

• Loan Portfolio: Loan and Income Growth, Portfolio quality
• AUM of INR 3,656 crore (+166% compared to Q1’FY22 and +23% compared to Q4’FY22)
• INR 1,359 crore of Gross Loans originated in Q1’FY23 (+311% compared to Q1’FY22 and +41% compared to Q4’FY22)
• Total Income stood at INR 123.8 crore (+141.4% compared to Q1’FY22 and +8.4% compared to Q4’FY22)
• Profit before tax (PBT) increased to 10.4 crore (+340.6% compared to Q1’FY22 and +29.3% as compared to Q4’FY22)
• Profit after tax (PAT) increased to 7.3 crore (+329.4% compared to Q1’FY22 and +20.7% as compared to Q4’FY22)
• GNPA/ NNPA as on Jun’22 stood at 1.7% /1.2% (As a % of Total AUM)
• Liability and Liquidity Position
• Total lender count increased to 63 as on Jun’22, added 8 new lenders during Q1’FY23
• Total Debt stood at INR 2,208 crore as on Jun’22, and overall debt to equity ratio was 2.26x
• Healthy capital position with CRAR of 28% (as on Jun’22)
• Branch, Customer Network and Employee Strength
• 25,000+ customers as on Jun’22 (+5,000 customers in Q1FY23)
• 96 branches (as on Jun’22), addition of 5 new branches during the quarter
• 1,275+ Employees as on Jun’22, net employee addition of 165+ during Q1’FY23

Brief financial snapshot:

Particulars	Q1’22	Q4’22	Q1’23	Growth (Y-o-Y)	Growth (Q-o-Q)
Total Income	51.3	114.2	123.8	141.3%	8.4%
Interest Expense	22.4	49.7	53.1	137%	6.9%
Net Total Income	28.9	64.5	70.7	144.6%	9.6%
Operating Expenses	21.6	47.3	51.0	136.1%	7.9%
Impairment on Financial Instruments	4.9	9.3	9.4	91.8%	1.0%
PBT	2.4	8.0	10.4	333.3%	29.3%
PAT	1.7	6.1	7.3	329.4%	20.7%

Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “U GRO Capital is at the forefront of using data analytics and technology to serve the underserved MSME segment. We have been pioneers of ‘Lending as a service’ by harnessing the power of Co-lending/ Co-origination models and steering the company towards transitioning into a lending platform through off-balance sheet AUM approach. Operational efficiencies have started to kick in with improving profitability with each passing quarter. The company is on track to achieve AUM of INR 20,000 crore by 2025, as we achieved our highest ever disbursement in Q1 FY23.”

About U GRO Capital Ltd

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analyzers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 3,000+ crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

U GRO Capital Appoints Smita Aggarwal as an Additional Independent Director

U GRO Capital, a listed MSME lending fintech platform, today announced the appointment of Ms Smita Aggarwal as Additional Independent Director of the company.

Smita has three decades of experience in finance as a banker, lender, regulator and an investor. She is Global Investments Advisor for Flourish Ventures, a global fintech focussed fund, and leads investments in innovative fintech start-ups that help advance financial health and inclusion in Asia. Smita is on the Fintech Advisory Board of New York University and Global Fintech Fest. She is also a member of the Board of Directors of IIFL Asset Management Company and guest faculty for “Fintech in Emerging Markets” at the Stern School of Business, New York University.

Smita has held leadership positions with noteworthy names such as Omidyar Network, Fullerton India Credit, Reserve Bank of India and ICICI Bank with a successful track record of building businesses from scratch, introducing new products, and driving growth through innovation. She is a rank-holder chartered accountant and has attended executive programs at Harvard Business School and MIT Sloan School of Management. Listed in “Top 35 Global Women in Fintech Power list”, ‘Top Women in Finance’, “Top 30 Fintech Influencers” and “Women Who Venture” – brings together her high caliber experience and energy to U GRO Capital.

Speaking on the appointment, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “We are delighted to welcome Ms. Smita Aggarwal to U GRO Capital’s board as an independent director. U GRO has been focusing on Impact & ESG extensively, she has done extensive work around digital financial inclusion space and we are confident that her addition to the Board would sharpen U GRO’s focus in these areas”

Smita Aggarwal said, “I am delighted to join U GRO Capital as an Independent Director and be a part of the company's rapid growth journey. This is an exciting time for U GRO Capital, as it is rapidly approaching its Vision 2025 growth targets and surpassing significant milestones in doing so, which also becomes a source of excitement to me.”

As of 31 December 2021, U GRO Capital’s AUM had risen to Rs. 2,589 crore and its branch network stood at 82. Further it recorded the highest monthly disbursements at Rs. 414 crore in December 2021. Its customer base recently crossed the 16,500 mark. Continuing the momentum, the company has set a vision 2025 of acquiring 1 % market share of the outstanding MSME credit, achieving an AUM of Rs. 20,000 crore and serving 1 million MSME customers.

U GRO Capital Impact Financing Get Endorsement of Swiss-based responsAbility through a Debt Investment of INR 138 Crores

U GRO Capital, a listed, small business lending MSME focused fintech platform raised its first impact focused debt investment of INR 138 cr from funds managed/ advised by Switzerland based impact investor responsAbility. The transaction was structured in two legs - in the first leg, an INR 31 Cr equivalent USD-denominated ECB was raised which was followed by INR denominated NCDs totalling INR 107crs in the second leg.

The ECB transaction was done via an innovative social bond structure created as a result of joint efforts of the Swedish International Development Agency (SIDA), responsAbility and Danske bank to mobilize USD 177.5 Mn of debt capital from private investors. These entities joined forces to contribute to the Sustainable Development Goals of the UN 2030 agenda and launched a social bond that bundles loans to innovate companies in capital scarce regions operating in in the financial inclusion, healthcare and WASH (water, sanitation, hygiene), agriculture and climate finance sectors, and that have a measurable, positive social impact.

The ECB transaction was completed in record time of 3 months.

U GRO Capital aspires to become the largest MSME platform in India and this transaction which brings in support of DFIs to its overall objectives reaffirms the faith of its 50+ lenders in its business model. This transaction is the first of its kind for U GRO Capital and is expected to provide a boost to the overall targets it wants to achieve; the company will be looking forward to many such transactions over the coming years.

Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “This partnership marks a milestone in our journey as we share a common vision of financial inclusion with responsAbility and we continue to expand our reach and scope. DFIs and impact investors are critical funding partners to help us bridge the MSME credit gap in India and with this transaction, we have been able to affirm impact investors’ confidence in our business model. This transaction opens up a new stream of debt financing for us as we continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model.”

Rudrashis Roy, Investment Officer – Financial Institutions Debt, responsAbility said, “India continues to be an important market for funds managed or advised by responsAbility and we are excited to work with a like-minded partner like U GRO Capital to improve access to finance in the country. We were impressed with the way U GRO Capital has been able to offer credit products across the entire MSME spectrum through a multi-channel distribution strategy and how it is trying to solve problems related to data availability and quality in MSME underwriting through the use of technology and data analytics.”

The proceeds will serve as crucial funding to the Micro, Small and Medium Enterprises (MSME) segment in India. Lending to U GRO Capital directly contributes to the UN Sustainable Development Goals (SDGs) in a large economy characterized by a large lending gap for Small and Mid-Sized Enterprises that hinders job creation, fuels inequality, and stifles economic development

U GRO Capital currently has 75 branches across 9 states. It aims to expand the branch network to 100 by FY2022 and intends to reach 250,000 MSMEs in the coming 4 financial years.

About U GRO Capital Ltd.

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO Capital aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO Capital’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analysers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO Capital. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The company has raised ~INR 2500 crore of equity & debt capital from marquee private equity investors, family offices, banks and other financial institutions over the last 3 years.

About responsAbility

responsAbility has invested over USD 11 billion in emerging markets since 2003, and as an impact asset manager, focuses on climate finance, sustainable food production, and financial inclusion. It works closely with players in local markets, as it maintains offices around the globe, in order to strategically take steps to directly contribute to reaching the UN’s Sustainable Development Goals. Currently, responsAbility manages USD 3.7 billion in assets invested in over 300 ESG-vetted high-impact companies in nearly 80 countries.

On January 27, 2022, M&G plc, the international savings and investments business, announced that it has agreed to acquire a majority stake in responsAbility Investments AG. M&G has agreed to acquire approximately 90% of the issued share capital of responsAbility and expects to acquire the remaining 10% in due course. The acquisition is subject to regulatory approval.

This press release may contain projections and other forward-looking statements regarding future events or future financial performance. These statements are only predictions and reflect our current beliefs and expectations with respect to future events and are based on assumptions and subject to risk and uncertainties and subject to change at any time. Given business risks and uncertainties, undue reliance on these forward-looking statements should not be placed. Actual events or results may differ materially from those contained in the projections or forward-looking statements.

U GRO Capital Disburses INR 790 Cr in Q2 FY22, With Highest Ever Advances of INR 288 Cr in September 2021

Customer base touches 10,000 mark; total employee strength at 700

The Board of Directors of UGRO Capital Limited approved the financial results for the quarter and half year ended 30th September 2021 at its meeting held through video conference on Tuesday, 2nd November 2021.

Key updates for the quarter

• Disbursements for the quarter stood at INR 790Cr registering a Q-o-Q Growth of 139%. Also, the company clocked its highest ever disbursements in Sep’21 (INR 288Cr)
• AUM stood at INR 1,933 Cr as of Sep-21 growth 98% YoY and 41% Q-o-Q
• Total cumulative disbursements crossed INR 3,636Cr since inception
• Customer base crossed 10,000 mark
• Company continued to expand its physical footprint. Branch count increased to 55 as compared to 34 in last quarter
• Company has added 23 new lenders in the last twelve months taking the total active lender base to 37 as of Sep-21
• Total Income at INR 62.7Cr increased 80% YoY and 22% Q-o-Q
• The Company continued to hire additional manpower on the business side in line with its growth plans. Total employee base at the end of the quarter stood at 580 vs 194 employees a year ago The total employee base as of today (October end) has crossed the 700 mark

Key performance highlights for Q2FY22

a) Loan Portfolio:

• The Company’s AUM as of the end of September 30, 2021, stood at INR 1,933Cr compared to INR 978 Cr as of Sep-20 registering a 98% increase on a Y-o-Y basis
• With contribution from all the distribution channels, the company clocked its highest ever disbursements in Sep’21 (INR 288Cr)
• The loan book is 78% secured with a well-diversified portfolio across sectors and geographies (3,250+ pin codes)
• Portfolio GNPA stands at 1.9% as of September 30, 2021

b) Liability and Liquidity Position

• The Company further widened its active lender base to 37 lenders testifying the strength of U GRO’s business model
• The Company’s overall liability book rose to INR 1,096Cr in Q2FY22, with overall debt equity ratio still at 1.14x indicating a long runway for growth
• Co-lending partnerships – The company entered into a co-lending partnership with IDBI bank during the quarter thus expanding its co-lending relationships with multiple banks for various product categories
• The company’s credit rating outlook during the quarter improved from Stable to Positive
• The company maintains a CRAR of 47%, indicating a comfortable capital position

c) Financial Performance

• The company’s total income increased to INR 62.7Cr in Q2FY22, as compared to INR 34.8 Cr in Q2FY21 an increase of 80% on a Y-o-Y basis
• The Net Interest Income (NII) for Q2FY22 stood at INR 31.7Cr compared to INR 20.7Cr in Q2FY21. 53% increase on Y-o-Y basis. Net interest margins improved 40bp QoQ to 7.7% largely due to reduction in the borrowing cost
• The total provisioning as of Sep-21 stood at INR 24.2Cr vs the regulatory requirement of INR 22.1Cr.
• The Company declared a PBT of INR 4.7Cr, as compared to INR 2.7Cr in Q2 FY21
• The net worth of the Company stands at INR 958 Cr as on September 30, 2021

Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “We started our operational journey in January 2019 and completed our first full year of operational run from April 2019 – March 2020 which was one of the most turbulent time for NBFC industry post IL&FS crisis. As we were coming out of the after effect of the same, the business was completely halted from April 2020 – September 2020 and again in April 2021 to June 2021 due to the impact of covid pandemic. Our Q2 FY22 results are testimony to our long-term commitment to solve the credit problem of MSMEs through our sectoral approach, digital platform combined with both multi-channel asset engine and collaborative partnership on liability side.

Within our defined sector we have now built capabilities to serve small business customers with borrowing need of Rs. 1 Lac to Rs. 3 Crores through our four-pronged asset channel and we have been successful in building India’s first fully data driven underwriting platform which has embraced the Data Tripod of GST, Banking & Bureau.

We continue to expand our distribution reach through our GRO Micro branches, and their relative contribution would start getting reflected in next few quarters, our Prime Branches have reached maturity and we are adding people to improve the throughput, our Eco System Channel, both SCF & Machinery is benefiting from the digital and physical footprint we have created. In last two quarters our GRO – Xstream platform has on boarded more than fifteen FinTech / NBFC partners on asset side and Banks on liability side. We will carry on the momentum and traction which is now coming because the infrastructure we have built over last one year and we have a clear path of achieving our mission of serving 1mn customers and take 1% market share of outstanding MSME Credit of India.

About U GRO Capital

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analyzers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 2500 crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

U GRO Capital Set to More Than Double Its Employee Strength to 1000

Pia Shome, Chief People Officer, U GRO Capital

U GRO Capital, a listed, small business lending fintech platform has embarked on its aspirational expansion in the tier 3-4 regions in the states of Gujarat, Rajasthan, Tamil Nadu, Telangana and Karnataka. The company aims to expand its network of 34 branches to 100 by the end of FY 2022. It will be adding 50 ‘micro’ branches in the mentioned locations, to extend formal credit to the micro businesses.

Complementing the geographical expansion, the company plans to more than double its employee strength. With the count increasing rapidly, U GRO Capital recently crossed the 550 employee mark, and plans to augment it to ~1000 employees. The hiring, which also includes a significant portion of campus recruitment, will help create employment opportunities for the homegrown workforce in these tier 3-4 regions. The entire hiring process will be executed virtually right from recruitment to onboarding and induction.

To enhance its capabilities across all the key business and operational facets, U GRO Capital is extensively investing in disciplines including but not limited to product, technology, infrastructure, innovation and human resource. The hires, hence, will be made across multiple departments such as strategy, treasury, operations, finance, technology, human resources, sales, credit, staffing, and marketing, amongst others. The guiding imperative is to build a robust organizational structure with the right mix of human and technological capabilities, to resonate with the growing business.

On the diversity and inclusion front, U GRO Capital aims to achieve a gender ratio of 20% by FY 2022 doubling the rate from 10% currently. The work has already started as the company is recruiting women at key leadership positions.

Pia Shome, Chief People Officer, U GRO Capital said, “We, at U GRO Capital, envision to solve the unsolved MSME credit gap and have laid a strong foundation towards the same. We have now set on our aspirational growth journey and scaling up of our current ~550 members’ strong team to 1000 is a critical aspect. In fact another 250 People from diverse background across various work profiles & levels are set to join us in the next two months. As we take significant strides towards our mission, U GRO Capital’s programs are designed to enable fast tracked growth for the employees as well, while keeping their well-being at the forefront”.

As of August 31, 2021, U GRO Capital’s cumulative disbursement had crossed INR 3,300 crore and its assets under management (AUM) stood at INR 1,729 crore. In the next five years, U GRO Capital aspires to build an INR 20,000 crore of AUM while acquiring approximately 1% market share of the outstanding MSME credit in India by opening around 270 branches. This will help in its bid to serve over lacs of small business customers.

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analysers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 2500 crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

Acuite Upgrades Ratings of U GRO Capital

• Uptick in disbursements and improvement in collection efficiency during June-August 2021
• Diversification of lender base and strong pipeline of liability for near future
• Robust and resilient portfolio as evidenced through improved collection efficiency and lowered delinquencies

U GRO Capital, an NSE & BSE listed, small business lending fintech platform, today announced that Acuite Ratings and Research has upgraded its rating outlook from 'Stable' to 'Positive'. The company's Rs.1100 crore bank loan and Rs. 450 crore non-convertible debentures (NCD) have been rated A / Positive. The agency has also reaffirmed Acuite A1 rating to the Commercial paper programme amounting to Rs. 100 crore.

The rating rational for the upgrade describes following:

In the past few months, U GRO Capital has seen significant momentum in loan disbursements, which was at Rs. 243 crore in August 2021, Rs.260 crore in July 2021 and Rs.193 crore in June 2021. The company has also commenced lending under the co-lending partnership with Bank of Baroda of Rs. 1000 crore since July 2021.

Underlying portfolio continues to be robust and resilient as evidenced from lower delinquencies of 8.9% as on August 31,2021 as against 12.9% as on March 31, 2021 and collection efficiency of over 92% every month since June 2021.

The company has demonstrated its ability to raise Rs.705.40 crore by ways of term loans, NCD, Commercial Paper in FY2021 from a diversified base of around 25 lenders including large public and private sector banks. The rating continues to take into account the governance framework of U GRO Capital wherein majority of the Board comprises of Independent Directors, nominee directors and an experienced management team. The rating also factors in the company's high capitalization levels and low gearing levels assessing it as financially stable. 

U GRO continues to invest into its distribution channel to diversify its asset profile within MSME from 1 Lac loan to 5 crore loan segment. This has in return led to subdued Return on Average Assets (RoAA) of 1.98% as on March 31, 2021 (1.90% as on March 31, 2020). Acuite takes cognisance of recent co-lending partnership with Bank of Baroda along with proposed partnerships pipeline which along with focus on branch network is expected to drive the outstanding portfolio growth going forward.

On the rating upgrade, Mr. Shachindra Nath, Executive Chairman and Managing Director, said "We at U GRO Capital are delighted with the rating upgrade by Acuite. U GRO is building one of India's largest FinTech for small business financing with an aspiration to serve more than 1 million customers and take 1% market share to the outstanding credit of MSME financing. Our focus on building our entire underwriting on the Tripod of Data driven by GST Banking and Bureau has reached full maturity and we believe that MSME financing is at the point of inflection where it would reach to consumer financing level in next few years.

This is also a testament to our efforts in the last few years which has allowed us to sail on our rapid growth journey, as we are now expanding our branch network to 100 and increasing employee strength to 1000, by FY2022."

About U GRO Capital

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital's mission is 'Solve the Unsolved' – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India's transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO's lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analysers, automated policy approvals, and machine learning OCR technology. Company's GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 2500 crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

U GRO Capital Appoints Amit Mande as Chief Revenue Officer

Amit Mande

U GRO Capital, a NSE & BSE listed, small business lending fintech platform, today, announced the appointment of Mr. Amit Mande as Chief Revenue Officer. In this role, he will handle the asset side of U GRO Capital and primarily focus on deepening the existing distribution channels, creating newer partnership and continue to scale UGRO’s business to achieve its mission of serving 1 Million MSME customers and take 1% market share of outstanding credit to MSMEs in India by 2025.

Amit brings 20 plus years of cross-functional banking experience with significant expertise in secured as well as unsecured retail assets. Prior to joining U GRO, he was CEO of M Capital, which is the lending arm of Mswipe where he launched the lending business which has been operational since January 2021.

Previously, he has managed a variety of retail asset products throughout his career – ranging from Personal Loans, Business Loans, LAP, Mortgages, Consumer Durables, CV/CE Finance and Two-Wheeler Finance, Auto and MSME.

He has been instrumental in setting up the SME lending business of Rattan India Finance, he was Business Head for Unsecured SME loans for Capital First and has worked with Barclays Bank, ABN AMRO Bank and Standard Chartered Bank. He is management graduate from Jamnalal Bajaj Institute of Management Studies and an engineering graduate from V.J.T.I, Mumbai.

Announcing the appointment, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “We are glad to welcome Amit in our team, as the Chief Revenue Officer. With this addition we have completed the reset of our management team and we now have strong layers of business leaders which would help me to achieve the vision of capturing 1% market share and serving 1 million small business customers in India. India’s SME financing market is at its inflection point wherein the Data Tripod of GST, Banking and Bureau would bring it to the levels of consumer financing in next few years. We have been resetting the management team which is nimble and agile, understands conventional underwriting but simultaneously has the ability to adopt to these changes which are happening in lending industry – we would be one of the largest FinTech driven by its own balance sheet and collaboration with large banks and financial institution.”

On the appointment, Mr. Amit Mande said, “I am delighted to join U GRO Capital which is closely working on a mission of solving the unsolved credit needs of small businesses through its unique initiatives. The building blocks of digitisation, strong analytics, robust risk platform and a large, diversified distribution which have been put in place in short span of two years is a matter of inspiration for every other FinTech and I am privileged to be given the opportunity to scale this to next level. My continuous engagement with Mr. Nath and the Board of U GRO gives me confidence that U GRO is the long term home for achieving my professional goals.”

About U GRO Capital

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analysers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 2500 crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.

U GRO Capital Launches 'Pratham', A ₹ 1,000 Cr MSME Co-lending Program in Partnership with Bank of Baroda

U GRO Capital, a BSE listed, technology enabled small business NBFC, today announced the launch of a co-lending partnership for micro, small and medium enterprises (MSME) with Bank of Baroda, one of the largest banks in India. Termed as ‘Pratham’, the loan disbursements have commenced on the occasion of Bank of Baroda’s 114th Foundation Day. The program has been launched under Reserve Bank of India’s revised co-lending guidelines.

‘Pratham’, a ₹1000 crore co-lending program will allow the MSMEs to avail customized lending solutions at a competitive rate of interest with a significant reduction in turn-around time. The loan amount ranges from ₹ 50 lakh to ₹ 2.5 crore to be offered at an interest rate starting from 8% with a maximum tenure of 120 months.

Shachindra Nath, Executive Chairman & Managing Director, U GRO.

 Speaking on this partnership, Mr. Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said, “It gives us immense pleasure to launch one of our most significant programs ‘Pratham’ and sign the co-lending agreement with Bank of Baroda under RBI’s revised guidelines. It is a reiteration of the value and trust that the bank places on our ability to leverage sectoral expertise and technology to solve the unsolved credit need of the MSMEs. We look forward to nurturing this essential relationship in our bid to support more MSMEs in the remotest locations, to help them revive and grow."

Shri Vikramaditya Singh Khichi, Executive Director, Bank of Baroda said, “We are glad to have joined hands with U GRO Capital by way of this co-lending program, which resonates with our intent to extend support to more MSMEs. We believe that forging such partnerships is the way forward and collaborative efforts leveraging individual entities’ expertise are of utmost importance to take co-lending to MSME segment to the next level. This is a significant advancement in the same direction."

‘Pratham’ program requires minimum documentation while providing financing to MSMEs. U GRO Capital’s proprietary developed platform GRO-Xstream, allows faster turnaround time, with an in-principle approval issued within 60 minutes. A wide range of MSMEs including the recently added Wholesale & Retail Traders under Priority Sector can avail credit via this program. The program is accessible to MSMEs across 200+ channel touch points around nine locations, i.e. Delhi, Jaipur, Ahmedabad, Pune, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata.

About U GRO Capital

U GRO Capital limited is a BSE listed, small business lending fintech platform. The Company is focused on addressing capital needs of small businesses operating in select eight sectors by providing customized loan solutions.

U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need. U GRO Capital believes that the problem of small businesses can be solved by building deep expertise around core sectors of SMEs in India coupled with a data centric, technology-enabled approach.

The Company has raised ~INR 920 crore of capital from a diversified set of private equity funds like institutional investors and well-known family offices.

The Company strives to build a strong SME financing platform based on sectoral understanding supplemented by a fully integrated technology and analytics platform.

About Bank of Baroda

Bank of Baroda (“The Bank”) established on 20th July 1908 is a State-owned banking and financial services organisation, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.

Bank of Baroda is India’s leading public sector bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 8,300+ branches, 11,600+ ATMs, Cash Recyclers supported by self-service channels and over 23,000 Business Correspondents. The Bank has a significant international presence with a network of 96 branches/offices of subsidiaries, spanning 19 countries. 

The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. IndiaFirst Life Insurance Company Limited and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.

U GRO Capital appoints Pia Shome as Chief People Officer

U GRO Capital, a BSE listed, sector focused small business lending fintech platform, today announced the appointment of Pia Shome as Chief People Officer. In this role, Pia will be instrumental in building a quality talent pool across the nation as the company ramps up its geographical reach and expand physical presence to 100 GRO Micro Branches in the coming year. She will also augment the culture of high performance and meritocracy while setting up clear career progression programs for U GRO Capital employees.

Pia is an INSEAD alumnus and has over 16 years of experience in the BFSI sector. Prior to joining U GRO Capital, Pia was Head - Human Resources at SMEcorner. She brings extensive experience, having worked in organisations like IDFC First Bank, RBL Bank, DBS Bank, Barclays Bank and TCS eServe International. She has played crucial roles in not only scaling up start-ups but also managing mergers of multiple financial institutions. Pia has served in leadership positions across various verticals like Business Partnering, Recruitment, Rewards and Recognition, Campus Relations, Talent Management and Learning & Development.

Announcing the appointment, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, "It gives us immense joy to welcome Pia Shome as Chief People Officer. The realization of U GRO Capital's aspiration to solve the unsolved credit gap of MSMEs depends heavily on the existence of a coherent, competent, passionate, and agile leadership team. We are confident that Pia's addition to the team will stimulate a culture of meritocracy and ownership among our employees as we chart out their career progression with us. We look forward to Pia's contribution to help build scale as we spread across the country to help MSMEs. I wish her all the very best and a long and illustrious stint with U GRO Capital."


On her appointment, Pia Shome said, "I am thrilled to be a part of the U GRO Capital team, which has a distinguished structure built upon the founding pillars of knowledge and technology. I firmly believe that people as well as technology shall be our biggest differentiators. In our journey ahead, our focus will be to build strong people capabilities and a culture driven by meritocracy. I am heartened by U GRO Capital's aspirations of ongoing nationwide expansion and working towards a larger cause of solving the unsolved credit gap of MSMEs. I look forward to joining the team on this enthralling journey."

About U GRO Capital Ltd.:

U GRO Capital limited is a BSE listed, small business lending fintech platform. The Company is focused on addressing capital needs of small businesses operating in select eight sectors by providing customized loan solutions.

U GRO Capital's mission is 'Solve the Unsolved' – Small Business Credit Need. U GRO Capital believes that the problem of small businesses can be solved by building deep expertise around core sectors of SMEs in India coupled with a data centric, technology-enabled approach.

The Company has raised ~INR 920 crore of capital from a diversified set of private equity funds like institutional investors and well-known family offices.

The Company strives to build a strong SME financing platform based on sectoral understanding supplemented by a fully integrated technology and analytics platform.