U GRO Capital, a BSE listed, technology-focused platform, has posted its financial results for Q3 FY20 and posted a PAT of Rs 6.9 Crore. This accomplishment makes U GRO Capital the first fintech to achieve profitability within its first full year of commercial operations. The firm began disbursals in January 2019.
Commenting on the results, Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “Q3 FY20 saw a continuation of the accelerated technological aspirations and conservative underwriting strategies we implemented in Q2, with excellent results. We are extremely proud of becoming the first fintech platform to achieve profitability within a year of commencing business operations. This is only the beginning of our story, and we expect to see much greater profitability as our asset engine starts reaping the benefits of the excellent partnerships we have formed. Our launch of GRO-Direct has been a success, and we continue to strive to build it into a platform that can provide a revolutionary non-intermediated financing option for small businesses.
Our credit underwriting continues to be conservative in response to rising NPAs in the market, and we are seeing the fruits of this approach as portfolio performance continues to be excellent with GNPA at <0.1%. Maintaining this quality is of paramount importance, not only for the asset side but also to provide liability sources with comfort in lending to us. Looking forward, it is clear that we are on the right track – and we need to work even harder to forge a reality where we fulfil our mission statement of solving India’s SME credit problem.”