U GRO Capital, a leading DataTech NBFC focused on MSME financing, celebrated a key milestone by successfully raising ~INR 2,500 million through Non-Convertible Debentures (NCDs) from the famous Asian Development Bank. This investment demonstrates ADB’s continuous commitment to creating inclusive, resilient, and long-term prosperity by helping small companies at the grassroots level.
In December 2023, U GRO obtained INR 2,500 million in financing through Non-Convertible Debentures (NCDs) from the Dutch entrepreneurial development bank, FMO.
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% of participants witnessed business growth, with a surprising 36% increase in employment following U GRO loans. This practical impact reflects U GRO Capital’s commitment to promoting economic growth and employment creation.
U GRO Capital’s commitment to Micro Enterprises of India, combined with its technology-driven lending expertise, has established the organization as a dependable partner for global DFIs. This strategic variety ensures that the NBFC’s responsibility is evenly distributed and not simply dependent on the Indian banking sector.
Shachindra Nath, Founder and Managing Director of U GRO Capital, expressed his views on the collaboration, stating, “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 with impact funding organizations 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.”
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Suzanne Gaboury, ADB Director General for Private Sector Operations, emphasized the significance of the partnership, saying, “We are pleased to partner with U GRO Capital in their mission to empower MSMEs in India. MSME Finance is a key driver for financial inclusion, 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 financial inclusion in India.”
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