UGRO Capital Limited, an MSME-focused non-banking financial company (NBFC), has successfully raised Rs 1,265 crore through the allotment of compulsory convertible debentures (CCDs) and warrants. The fundraising round saw significant contributions from existing private equity investor Samena Capital, which invested Rs 500 crore. Other institutional investors, including Aregence and several of India’s prominent family offices, also participated in this capital infusion.
The approval for this equity capital raise, amounting to Rs 1,332.66 crore, was given during the company’s board meeting on May 2. Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed his enthusiasm about this development. “Our aim has always been to build a data-tech driven lending institution that is institutionally owned, independently supervised, and professionally managed, accessible to public market investors. We’re now closer to our goal of helping all small businesses in India,” he said.
This move aligns with UGRO Capital’s strategic objective of enhancing its lending capabilities to small and medium-sized enterprises (SMEs) across various sectors in India. The company leverages a data-driven approach to provide customized loan solutions and engages in co-lending partnerships with major banks and other NBFCs.
Additionally, UGRO Capital had earlier announced the acquisition of MyShubhLife, a Bengaluru-based embedded finance platform, for an enterprise value of Rs 45 crore. The acquisition was structured as a 64:36 equity-cash transaction and received board approval in May. MyShubhLife will now operate as a wholly-owned subsidiary of UGRO Capital, further strengthening UGRO’s market position and expanding its service offerings.