UGRO Capital Limited, a leading DataTech NBFC focused on MSME lending, has taken a significant step towards expanding its reach and offerings by acquiring ‘MyShubhLife’ (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of INR 45 crore.
MSL has been offering financial services designed for small shopkeepers and distributors. The offerings include unique products having daily and weekly instalment options, along with the offer of the overdraft, thereby exhibiting robust underwriting and distribution capabilities. MSL has already engaged with over 15 million merchants through partnerships with Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay, amongst others.
The acquisition of MSL, now a wholly-owned subsidiary of UGRO Capital, aligns with the company’s strategy to penetrate the embedded finance segment. UGRO aims to onboard 200,000 new retailers over the next three years, targeting an incremental Assets Under Management (AUM) of INR 1500 crore and a Profit After Tax (PAT) of INR 100 crore during the same period.
Reflecting on this acquisition, Mr. Shachindra Nath, Founder and Managing Director of U GRO Capital, said,
“The acquisition of MyShubhLife marks a significant milestone in our journey. Scaling up Embedded Finance requires deep understanding & penetration of payments players ecosystem and a cutting-edge data & technology stack. MSL has a proven track record on both counts, and it fits well with UGRO’s strategy. MSL’s live embedded relationships with leading payment ecosystems and a very contemporary and functional technology architecture will add granularity & yields on our portfolio. This acquisition reinforces our commitment to direct digital lending for small retailers.”
Mr. Monish Anand, Founder & CEO, MyShubhLife, said,
“The realm of lending is primarily a matter of scale, and in UGRO we have found a lender which not only has access to an extensive balance sheet but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation. We at MSL are delighted to embark on this new journey together with UGRO, and we aim to work towards achieving our mutual goal.”