UGRO Capital Limited reported a strong performance for the third quarter of FY25, achieving significant milestones in asset growth, loan origination, and business expansion. The company continues to strengthen its position in the MSME lending sector through innovation and robust operational performance.
Key Highlights of Q3 FY25:
1. Asset Under Management (AUM):
- UGRO Capital’s AUM reached ₹11,050 crore as of December 31, 2024, marking a 33% YoY increase compared to ₹8,364 crore in Q3 FY24.
- Sequentially, the AUM grew 9% from ₹10,157 crore in Q2 FY25.
2. Loan Origination:
- The company achieved its highest-ever quarterly loan origination at ₹2,050 crore, compared to ₹1,971 crore in Q2 FY25 and ₹1,552 crore in Q3 FY24.
- Micro Enterprises Secured Loans contributed ₹500 crore in Q3 FY25, up from ₹180 crore in Q3 FY24.
3. Expanding Branch Network:
- UGRO Capital added 74 SME branches during the nine months of FY25, enhancing its nationwide presence.
4. Liability Management:
- The company mobilized over ₹1,300 crore in Q3 FY25, the highest in its history.
- Borrowing sources remained diversified:
- Banks contributed 48%.
- Capital markets, including NCDs, accounted for 29%.
- Development Financial Institutions (DFIs) and Financial Institutions (FIs) made up 23%.
5. Proprietary Credit Scoring Model:
- UGRO Capital secured a patent for its innovative credit scoring system, GRO Score, reinforcing its technological leadership in the lending space.
6. Collection Efficiency:
- Maintained stable collection efficiency at 96%, demonstrating strong operational controls.
Future Outlook: UGRO Capital aims to expand its secured micro-enterprise loans, targeting a 35% contribution to AUM by March 2026. The company’s strategic initiatives, including branch network expansion and innovation in credit scoring, position it for continued growth in the MSME lending sector.
