UGRO Capital recently revealed to have secured a $40 million (approx. Rs 3,300 million) loan commitment from the United States International Development Finance Corporation (DFC). This financing deal is supported by the United States Agency for International Development (USAID), which is providing personnel resources and technical assistance to promote inclusive and sustainable economic growth.
With DFC’s support, UGRO aims to expand its lending operations across India, focusing on women-owned businesses, with 70 per cent of the loan earmarked for 2X eligible enterprises and $5 million specifically for new-to-credit borrowers under the CGTMSE Guarantee.
Shachindra Nath, Founder and Managing Director (MD), UGRO Capital, expressed his excitement about the partnership with DFC. He said, “We are honoured to receive this endorsement from DFC. This transaction is a testament to UGRO Capital’s ability to forge meaningful partnerships with reputed global DFIs. Our shared vision of financial empowerment and inclusive growth drives us forward, and with DFC’s support, we will be able to further our mission of addressing every need of every MSME, especially women-owned businesses and new-to-credit borrowers.”
The agreement reflects UGRO Capital’s continued dedication to impact financing and its mission to empower India’s small businesses at the grassroots level.
Justin Andrew’s DFC’s Acting Vice President, Small Business & Financial Services, said, “Access to finance for new-to-credit borrowers and MSME finance is a key driver for financial inclusion, and we are thrilled to be working with UGRO Capital to address the credit needs of small businesses aligned with our goal of supporting economic growth and financial access in underserved communities. This partnership will play a crucial role in advancing the growth of MSMEs and promoting gender equality through 2X qualifying businesses.”
This marks UGRO Capital’s third major impact deal within a year, following previous funds raised through Non-Convertible Debentures (NCDs) from the Asian Development Bank (ADB) and the Dutch entrepreneurial development bank, FMO.
