UGRO Capital raises Rs 1,332.66Cr from existing, new institutional investors and marquee family offices

UGRO Capital Limited, a DataTech NBFC specializing in MSME lending, has raised Rs 1,332.66 crore through Compulsory Convertible Debentures (CCD) and Warrants. The equity fundraise is subject to shareholder approval.

UGRO raised this capital through an innovative combination of Compulsorily Convertible Debentures with Warrants, ensuring that the capital required for both the current year's growth and next year's growth is effectively locked in today.

Who are the investors?

The capital raise attracted notable commitment from Samena Capital, an existing private equity investor, which contributed Rs 500 crore through Warrants.

In addition, institutional investor Aregence and various marquee family offices participated in the round, while UGRO's founder, board members, and management team collectively committed Rs 16.25 crore in Warrants.

This is UGRO Capital's third capital raise, following successful fundraising efforts in 2018 and 2023.

Leadership comments

Shachindra Nath, UGRO Capital's Founder and Managing Director, expressed his excitement about this milestone, stating, "The capital raise marks a significant milestone in our journey. We have always wanted to create an Institutionally Owned, Independently Supervised, and Professionally Managed FinTech in the listed world, so that the opportunity is available to the large universe of Public Market Investors. We believe that we are at a pivotal moment where our potential of being a financial institution is serving the need of small businesses in India."

What does UGRO Capital do?

UGRO Capital aims to bridge the credit gap for small businesses in India, leveraging its data-driven approach and robust distribution network. UGRO's innovative platforms, such as GRO Plus, GRO Chain, GRO Xstream, and GRO X, offer specialized financing and supply chain solutions.

Its GRO Score (3.0) uses AI and machine learning to improve credit scoring for MSMEs, enhancing their access to finance.