UGRO Capital has planned to raise substantial growth capital amounting to Rs 1,315 crore.
The fundraise includes a preferential issue of Compulsorily Convertible Debentures (CCDs) worth up to Rs 915 crore and a rights issue of Rs 400 crore for existing public shareholders.
The company has demonstrated consistent growth over the past two years, with its Assets Under Management (AUM) nearly doubling from Rs 6,081 crore in FY23 to Rs 12,003 crore in FY25. Profit Before Tax (PBT) rose from Rs 84 crore to Rs 203 crore during the same period, while Return on Assets (ROA) improved from 1.3 percent to 2.9 percent. UGRO also expanded its customer base by over 100,000 and added 137 Emerging Market (EM) branches.
Following the capital raise, UGRO’s capital adequacy ratio is expected to increase from 19.41 percent to 29.4 percent, enabling greater lending capacity. The new CCDs will be issued at a conversion price of Rs 185 per share.
This follows an earlier capital commitment in June 2024 where UGRO raised Rs 258 crore via CCDs and Rs 1,007 crore through warrants issued at Rs 264 per share.
The rights issue of Rs 400 crore aims to allow public shareholders to retain their equity levels in line with the preferential allotment terms. Long-term shareholder Samena Capital, currently holding 7.49 percent of UGRO, has committed Rs 500 crore to the preferential issue. Other significant commitments include Rs 168 crore from Aregence, a Singapore-based public market investor, and multiple family offices.
Additionally, IFU – the Investment Fund for Developing Countries, a Danish impact investor and current stakeholder holding 16.35 per cent in UGRO – has committed Rs 150 crore to the rights issue. Contributions from the promoter group and employees totaling Rs 34 crore further reflect confidence in the company’s trajectory.
Commenting on the development, Shachindra Nath, Managing Director, UGRO Capital, said, “UGRO has delivered a strong operating performance. I am thankful to our existing shareholders and warrant holders for their significant capital commitments. This capital raise reinforces UGRO’s foundation as India’s first public-market startup and builds confidence among institutional investors, rating agencies, and liability providers. The MSME financing space remains a high-potential sector, crucial for national development and employment generation.”
UGRO Capital operates with a DataTech platform approach, blending deep analytics and AI-driven credit scoring through its GRO Score 3.0 system. It has developed multiple digital sourcing platforms like GRO Plus, GRO Chain, GRO Xstream, and GRO X to drive embedded finance solutions and supply chain integration.
With co-lending relationships across 17 banks and NBFCs, UGRO has built a significant off-balance sheet portfolio, comprising 42 per cent of its AUM. The company, backed by institutional investors, aims to capture 1 percent of the MSME lending market in the next three years.
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