UGRO Capital, a DataTech-focused NBFC specializing in MSME lending, has reinforced its partnership with FMO, the Dutch entrepreneurial development bank, by successfully raising approximately ₹260 crore through Non-Convertible Debentures (NCDs). This financing marks a continuation of their collaboration, with the funds directed toward key initiatives, including women empowerment, youth development, and addressing regional disparities in India’s MSME sector.
The latest INR-denominated NCD issuance was fully subscribed by FMO, underscoring its commitment to fostering inclusive growth and sustainable prosperity through financial support for entrepreneurs. This follows UGRO Capital’s earlier transaction in December 2023, when the company raised $30 million (~₹249 crore) through unlisted NCDs, primarily to support green financing.
UGRO Capital has been actively working to diversify its borrowing profile and reduce reliance on the Indian banking system. The company has secured endorsements for its Impact Financing program, raising around ₹150 crore from Development Financial Institutions and Impact Funds globally, including IFU (Denmark Government Sovereign Fund), Asian Development Bank (ADB), ResponsAbility, Calvert Impact Capital, Enabling Qapital, GMO, Water Equity, Microvest, and IREDA. This approach enhances UGRO’s financial flexibility and strengthens its balance sheet while ensuring significant socio-economic contributions.
Commenting on the transaction, Shachindra Nath, Founder and Managing Director of UGRO Capital, emphasized the importance of this renewed engagement, stating that it reaffirms UGRO’s dedication to financial inclusion and addressing critical social issues. He highlighted that the capital infusion would further the company’s mission of empowering women, bridging territorial disparities, and uplifting youth, thus driving sustainable development for underserved communities in India.
Juan Jose Dada Ortiz, Director of Financial Institutions at FMO, also expressed confidence in UGRO Capital’s impact-driven approach, noting that the partnership aligns with FMO’s goal of leveraging finance as a tool for social transformation. He emphasized UGRO’s innovative MSME lending model and its tangible impact on local economies.
UGRO Capital has extended credit to over 100,000 small businesses over the past six years, contributing to economic growth and employment generation across India’s MSME sector. The company’s diversified funding strategy, combined with its strong technology-driven lending framework, positions it as a key player in India’s financial inclusion ecosystem.
With a long-term goal of capturing 1% market share in India’s MSME lending space, UGRO Capital continues to expand its reach and develop solutions tailored to small businesses. This latest funding round reaffirms its commitment to leveraging technology and impact-driven finance to drive positive change.
