U GRO Capital has raised Rs 2,500 million through Non-Convertible Debentures (NCDs) from Asian Development Bank (ADB).
Speaking in this regard, Shachindra Nath, Founder and Managing Director (MD), U GRO Capital, stated, “This transaction is a proof of U GRO Capital’s ability to forge partnerships with, and attract funding from reputed global DFIs. We share a common vision of Financial Inclusion (FI) with impact funding organisations 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.”
In December 2023, the company had obtained Rs 2,500 million in financing through NCDs from the Dutch entrepreneurial development bank, FMO.
Suzanne Gaboury, Director General – Private Sector Operations, ADB, said, “We are pleased to partner with U GRO Capital in their mission to empower MSMEs in India. MSME Finance is a key driver for FI, 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. We are confident that together, we will positively impact the lives of MSME borrowers. This collaboration is consistent with our commitment towards greater FI in India.”
Over the last five years, U GRO Capital has played a critical role in closing the credit gap in India’s MSME sector, lending to nearly 90,000 small enterprises. A recent survey found that 94 per cent of participants witnessed business growth, with a 36 per cent increase in employment following U GRO loans.
