Latest news with #UGROCapital
Time of India
5 days ago
- Business
- Time of India
78% of our borrowers are first-generation entrepreneurs accessing formal credit: UGRO Capital
UGRO Capital , a data tech NBFC specialising in MSME lending, has highlighted a 48% credit gap in formal MSME financing in the country while emphasising the feasibility of creating a large MSME institution dedicated to MSME financing. The findings, released recently in the third edition of its Social Impact Report, also revealed that 75% of Indian MSMEs still rely on informal credit, despite the sector being the backbone of the country's economy. UGRO Capital , through its data-driven lending solutions, has supported over 135,000 MSMEs across diverse geographies. It has partnered up with 10 major banks and NBFCs to make lending solutions more accessible to the MSME sector. According to the report, 78% of UGRO Capital's borrowers are first-generation entrepreneurs tapping formal credit for the first time. The report additionally revealed that the number of women-led enterprises had increased to 74% of the total portfolio. It further noted that businesses led by women have the potential to generate 150-170 million jobs and form a significant segment to tap. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo The report stated that the MSME sector in India is the second-largest employer and benefits from a majority of government policies. The sector contributes approximately 30% to the nation's GDP and provides employment to over 2 million people, which makes it a crucial pillar of the Indian economy. The research report was based on a randomised sample of 508 borrowers, selected from different states and business categories. Speaking on the report findings, Irem Sayeed, Chief Credit Officer, UGRO Capital, said that it is particularly encouraging to note the participation of women-led businesses and borrowers adopting ESG initiatives. 'These are not just milestones; they are signals of a more resilient and equitable future being built through responsible financing. The 42% rise in women's employment within our borrower network is a testament to how capital, when directed thoughtfully, can deliver tangible social dividends,' Sayeed stated. Live Events The report also spoke of the whopping Rs 103 lakh crore shortfall in credit for the MSME sector, while highlighting that the government is looking to bolster the sector to increase financial inclusion. 'Due to the traditional player's inability to assess MSMEs creditworthiness, the credit gap of Rs 103 lakh crore exists. The MSME credit gap is a barrier to growth and inclusion in the MSME space. UGRO Capital is targeting the credit gap using an innovative mix of data and technology,' it said. The report emphasised continued innovation in data analytics and alternative credit assessment models to improve risk profiling and unlock new lending opportunities, particularly for new-to-credit and women-led enterprises. 'Strengthening digital capabilities will not only enhance operational efficiency but also provide MSMEs with faster, more seamless access to capital,' it stated.
Business Standard
18-06-2025
- Business
- Business Standard
UGRO Capital jumps on acquiring Profectus Capital
UGRO Capital added 3.15% to Rs 176.70 after the firm has informed that it will acquire 100% stake in Profectus Capital for Rs 1,400 crore in an all-cash deal, aiming to strengthen its position in the secured MSME lending segment. The transaction, subject to regulatory and shareholder approvals, is expected to close within the next two to three months. The acquisition of Profectus Capital is strategically aimed at enhancing UGRO Capitals four core NBFC pillars. It is expected to result in an immediate 29% growth in assets under management (AUM), significantly diversifying the combined loan book and accelerating expansion into high-yield Emerging Markets and Embedded Finance segments. The deal also marks UGROs entry into school financing, with an estimated medium-term potential of Rs 2,000 crore. According to the company, the acquisition offers strong geographic and product alignment, particularly in secured loan against property (LAP), machinery finance, and supply chain finance. This alignment is projected to drive operational efficiencies, with expected cost savings of Rs 115 crore and an incremental profitability boost of Rs 150 crore. Post-merger, UGRO anticipates a 0.6% to 0.7% increase in return on assets (ROA). The strengthened asset mix, with a higher share of secured assets, is expected to support the continued scaling of its Emerging Market and Embedded Finance verticals. The proposed acquisition is subject to approval from the Reserve Bank of India (RBI) concerning the change in control and management of Profectus Capital. The total consideration for the acquisition is Rs 1,398.60 crore, payable in cash in a single tranche upon closing. The acquisition will result in the purchase of 100% shareholding of Profectus Capital. The transaction does not qualify as a related party transaction. As for the issuance of shares, the consideration for the acquisition will be settled through a cash payment. Therefore, details regarding the issue price and class of shares issued are not applicable, as no shares are being issued in this transaction. UGRO Capital is a pioneering DataTech NBFC specializing in MSME and small business financing. By leveraging advanced data analytics and an extensive distribution network, it bridges the vast small business credit gap in India, delivering tailored credit solutions to micro, small, and medium enterprises (MSMEs) across the country. The company reported 24.04% jump in standalone net profit to Rs 40.55 crore in Q4 FY25 as against Rs 32.69 crore posted in Q4 FY24. Total income increased 24.83% YoY to Rs 412.44 crore in the quarter ended 31 March 2025.
Mint
18-06-2025
- Business
- Mint
UGRO Capital shares jump 7% on ₹1,400-crore all-cash acquisition of Profectus Capital
Shares of UGRO Capital surged over 7 percent in intraday trade on Wednesday, June 18, following the company's announcement of acquiring Mumbai-based NBFC Profectus Capital Private Limited in an all-cash deal worth ₹ 1,400 crore. The acquisition, subject to shareholder and regulatory approvals, is expected to be completed in the next two to three months. The deal will be financed through a combination of UGRO's recently concluded ₹ 400-crore rights issue and internal accruals. UGRO may also issue compulsorily convertible debentures to fund the balance. The company said the strategic acquisition will immediately expand its assets under management (AUM) by 29 percent, increasing the total consolidated AUM to approximately ₹ 15,471 crore. Profectus brings a ₹ 3,468 crore loan book to UGRO's portfolio. UGRO Capital announced that it will utilise the funds raised through its recent equity issuance to finance the acquisition of Profectus Capital. According to the company's statement, the capital will be directed toward building a fully secured asset base that offers immediate scale advantages without incurring origination costs. UGRO further stated that Profectus' secured lending operations are a strategic fit, aligning seamlessly with UGRO's data-centric underwriting model. 'To facilitate the discharge of purchase consideration for the proposed acquisition, the company is proposing to add financing of Profectus' acquisition as an object of the existing preferential issuance of compulsorily convertible debentures by seeking fresh approval from the board and shareholders,' UGRO said adding the deal is also subject to the approval of the Reserve Bank of India (RBI) and shareholders. According to UGRO Founder and MD Shachindra Nath, 'This strategically priced acquisition deploys our equity raise to achieve instant scale, ₹ 115 crore in cost savings, and an annualised incremental profit of ₹ 150 crore—boosting our RoA by 0.6 to 0.7 percent.' The move is aimed at diversifying UGRO's lending base and deepening its footprint in high-yield areas like embedded finance and MSME lending. Profectus Capital primarily focuses on secured lending products such as school financing, loans against property, and supply chain finance. Operating through 28 branches across seven Indian states, the NBFC had gross NPAs of 1.6 percent and net NPAs of 1.1 percent as of March 2025. Once the acquisition is complete, Profectus will become a wholly owned subsidiary of UGRO Capital. The two companies are expected to merge effective April 1, 2025. UGRO's management expects the combined entity to gain from enhanced lender relationships, with access to Profectus' network of private and small finance banks. The acquisition is structured through a share purchase agreement, with UGRO acquiring 100 percent of Profectus Capital's shares from existing shareholders. InCred Capital served as the exclusive advisor to UGRO Capital, with legal and financial due diligence support provided by SNG & Partners and PwC, respectively. Avendus Capital advised Profectus Capital and its shareholders. Investors welcomed the acquisition news, sending UGRO Capital shares up 7 percent to an intraday high of ₹ 183.35 on the BSE. Despite the uptick, the stock still trades more than 37 percent below its 52-week high of ₹ 294, last touched in July 2024. The scrip had hit its 52-week low of ₹ 144.11 in March 2025. UGRO Capital has had a volatile performance over the past year. The stock has declined over 38 percent in the last 12 months. In June so far, it has slipped around 1 percent after gaining 1 percent in May and over 7 percent each in April and March. Prior to this rally, the stock had posted losses for five consecutive months between October 2024 and February 2025.
Mint
18-06-2025
- Business
- Mint
UGRO Capital shares jump 7% on ₹1,400-crore all-cash acquisition of Profectus Capital
Shares of UGRO Capital surged over 7 percent in intraday trade on Wednesday, June 18, following the company's announcement of acquiring Mumbai-based NBFC Profectus Capital Private Limited in an all-cash deal worth ₹ 1,400 crore. The acquisition, subject to shareholder and regulatory approvals, is expected to be completed in the next two to three months. The deal will be financed through a combination of UGRO's recently concluded ₹ 400-crore rights issue and internal accruals. UGRO may also issue compulsorily convertible debentures to fund the balance. The company said the strategic acquisition will immediately expand its assets under management (AUM) by 29 percent, increasing the total consolidated AUM to approximately ₹ 15,471 crore. Profectus brings a ₹ 3,468 crore loan book to UGRO's portfolio. UGRO Capital announced that it will utilise the funds raised through its recent equity issuance to finance the acquisition of Profectus Capital. According to the company's statement, the capital will be directed toward building a fully secured asset base that offers immediate scale advantages without incurring origination costs. UGRO further stated that Profectus' secured lending operations are a strategic fit, aligning seamlessly with UGRO's data-centric underwriting model. 'To facilitate the discharge of purchase consideration for the proposed acquisition, the company is proposing to add financing of Profectus' acquisition as an object of the existing preferential issuance of compulsorily convertible debentures by seeking fresh approval from the board and shareholders,' UGRO said adding the deal is also subject to the approval of the Reserve Bank of India (RBI) and shareholders. According to UGRO Founder and MD Shachindra Nath, 'This strategically priced acquisition deploys our equity raise to achieve instant scale, ₹ 115 crore in cost savings, and an annualised incremental profit of ₹ 150 crore—boosting our RoA by 0.6 to 0.7 percent.' The move is aimed at diversifying UGRO's lending base and deepening its footprint in high-yield areas like embedded finance and MSME lending. Profectus Capital primarily focuses on secured lending products such as school financing, loans against property, and supply chain finance. Operating through 28 branches across seven Indian states, the NBFC had gross NPAs of 1.6 percent and net NPAs of 1.1 percent as of March 2025. Once the acquisition is complete, Profectus will become a wholly owned subsidiary of UGRO Capital. The two companies are expected to merge effective April 1, 2025. UGRO's management expects the combined entity to gain from enhanced lender relationships, with access to Profectus' network of private and small finance banks. The acquisition is structured through a share purchase agreement, with UGRO acquiring 100 percent of Profectus Capital's shares from existing shareholders. InCred Capital served as the exclusive advisor to UGRO Capital, with legal and financial due diligence support provided by SNG & Partners and PwC, respectively. Avendus Capital advised Profectus Capital and its shareholders. Investors welcomed the acquisition news, sending UGRO Capital shares up 7 percent to an intraday high of ₹ 183.35 on the BSE. Despite the uptick, the stock still trades more than 37 percent below its 52-week high of ₹ 294, last touched in July 2024. The scrip had hit its 52-week low of ₹ 144.11 in March 2025. UGRO Capital has had a volatile performance over the past year. The stock has declined over 38 percent in the last 12 months. In June so far, it has slipped around 1 percent after gaining 1 percent in May and over 7 percent each in April and March. Prior to this rally, the stock had posted losses for five consecutive months between October 2024 and February 2025. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
18-06-2025
- Business
- Time of India
Lender UGRO to buy Profectus in ₹1.4k cr deal
Lender UGRO to buy Profectus in ₹1.4k cr deal MUMBAI: UGRO Capital, a tech-driven non-bank lender focused on MSMEs, will acquire Profectus Capital in a Rs 1,400 crore all-cash transaction. The acquisition, funded through UGRO's recent equity raise, is subject to regulatory approvals and will result in Profectus becoming a wholly owned subsidiary. UGRO Capital was founded in 2017 by Shachindra Nath, a financial services professional with over 26 years of experience. The company uses data analytics and technology to serve small businesses and operates through more than 240 branches. It has built co-lending partnerships with 17 banks and NBFCs, positioning itself as a key player in MSME financing. Profectus Capital, also established in 2017 by K V Srinivasan, specialises in secured lending to small businesses, particularly in the education sector. TNN Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
