UGRO Capital Limited is a pioneering DataTech Non-Banking Finance Company (NBFC), specializing in MSME and Small Business Financing. Founded in 2018 by Mr. Shachindra Nath, UGRO Capital leverages advanced data analytics and an extensive distribution network to bridge the vast small business credit gap in India, delivering tailored credit solutions to Micro, Small and Medium Enterprises (MSMEs) across the country.
The company's vision is to become the Largest Small Business Financing Institution in India, with a mission to "Solve the Unsolved" by addressing the significant credit gap in the Small Business sector. UGRO Capital is listed on both NSE and BSE and operates as a systemically important non-deposit taking NBFC.
UGRO Capital is a technology-focused, data-centric, and technology-enabled small business lending platform. The company is strategically focused on addressing the capital needs of small businesses operating in select eight sectors, providing customized loan solutions. These key sectors include Healthcare, Education, Chemicals, Food Processing and Fast-Moving Consumer Goods (FMCG), Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering.
The company focuses on 9 sectors and 200+ ecosystems, representing 50% of the total MSME Lending market and Micro Enterprises, adopting a sector-focused approach. This strategic focus allows UGRO Capital to develop deep expertise in specific sectors while maintaining a comprehensive understanding of the unique challenges faced by businesses in each industry.
UGRO Capital utilizes a revolutionary proprietary underwriting model, GRO Score 3.0, which employs AI/ML to provide precise credit risk assessment and real-time business credit solutions. The GRO Score model produces a borrower-level rating based on credit bureau, bank statement, and GST information. AI/ML and integrated data and technology help generate over 25,000 data features from an applicant. This is then matched with Banking & Bureau Scorecards to generate a single 'GRO score,' further augmented with GST data as an external input.
The company has pioneered the "Lending as a Service" model in India and has effectively operationalized co-lending relationships with over 10 large public sector banks and other large non-bank financial companies. This technology-first approach enables the company to process applications efficiently while maintaining high standards of risk assessment.
UGRO Capital offers a diversified product portfolio to meet a wide range of MSME financing needs. These products include:
- Supply chain financing
- Unsecured business loans
- Machinery loans
- Business loans secured by property
- New-age products
- Micro enterprise loans
This comprehensive portfolio allows UGRO Capital to serve MSMEs across different stages of business growth and development.
UGRO Capital has demonstrated strong financial performance and growth. As of recent data, the company has a Market Cap of ₹2,151 Crore.
Q4 FY2024-25 Performance:
The company reported a 24.04% jump in standalone net profit to ₹40.55 crore in Q4 FY25, compared to ₹32.69 crore in Q4 FY24. Total income increased 24.83% YoY to ₹412.44 crore in the quarter ended 31 March 2025.
Key Financial Metrics for Q4 FY2024-25:
- Profit before tax: ₹57.21 crore (up 2.27% YoY from ₹55.94 crore in Q4 FY24)
- Assets Under Management (AUM): Surged 32.67% to over ₹12,003 crore (compared to ₹9,047 crore in Q4 FY24)
- Net loans: Surged 56.75% to ₹2,436 crore (compared to ₹1,554 crore in Q4 FY24)
FY2023-24 Performance:
- Net interest margin: Increased from 9.2% in FY23 to 10.8% in FY24
- Net profit margins: Grew from 6.1% in FY23 to 11.4% in FY24
- Net profit for the year: Increased by 200.0% YoY
- Market Capitalization: ₹2,151 Crore
- Promoter Holding: 2.25%
- Capital Adequacy Ratio (CAR): 20.8% (as of 31 March 2024, up from 20.2% a year ago)
- Gross NPA Ratio: 0.0% (as of 31 March 2024, compared to 2.5% a year ago)
- Net NPA Ratio: 1.6% (FY2024, compared to 1.3% a year ago)
UGRO Capital has undertaken several significant strategic initiatives and announced key developments:
- Leadership Appointment: Anuj Pandey has been elevated to CEO, effective July 1, 2025, a move expected to strengthen the company's leadership as it expands MSME lending operations.
- Acquisition: UGRO Capital has executed a share purchase agreement with Profectus Capital to acquire 100% stake for a total consideration of ₹1,398.60 crore.
- Rights Issue: The company announced a ₹400 crore rights issue priced at ₹162 per share, aimed at supporting its growth and enhancing credit delivery to small businesses.
- Growth: Reported significant growth in assets under management and profitability in FY25.
Mr. Shachindra Nath, Vice Chairman & Managing Director of UGRO Capital, embarked on his entrepreneurial journey by acquiring control of a listed NBFC, Chokhani Securities Limited, in 2018, transforming it into UGRO Capital. Prior to this, Mr. Nath played influential roles in setting up insurance companies, global asset management businesses, capital market, and lending institutions. Throughout his career, he has been instrumental in building two insurance companies, a large asset management company, and an NBFC.
With various capital raises throughout its journey, from both national and international entities, UGRO Capital is well-positioned for continued growth in its mission to empower the MSME ecosystem. The company's strategic focus on technology-driven lending solutions, combined with its sector-specific expertise and expanding distribution network, positions it effectively to capitalize on the growing demand for MSME financing in India's evolving economy.
