UGRO Capital:Innovation, Technology, and Financial Inclusion
Driving MSME Growth with Innovation, Technology, and Financial Inclusion
Mumbai, January 25, 2025: UGRO Capital, India’s premier DataTech NBFC, has delivered stellar financial results for Q3 FY25, achieving its highest-ever loan origination of INR 2,098 crore. This milestone highlights the company’s unwavering commitment to empowering MSMEs (Micro, Small, and Medium Enterprises) through cutting-edge financial solutions, data-driven underwriting, and strategic partnerships. With a 32% YoY increase in AUM, now at INR 11,067 crore, and a PAT of INR 103 crore for the nine-month period, UGRO Capital is transforming MSME financing in India. The company’s proprietary GRO Score credit model, branch expansion, and embedded finance platform have been instrumental in achieving this growth. Shachindra Nath, Founder and Managing Director of UGRO Capital, stated: Our robust Q3 FY25 performance underscores our commitment to driving financial inclusion and innovation. The GRO Score patent and our strategic partnerships have enabled us to serve over 1.6 lakh MSMEs effectively. We aim to scale our micro-enterprise portfolio to 35% of AUM by FY26 while delivering sustainable growth.
Financial Performance Highlights: Q3 FY25 UGRO Capital’s exceptional Q3 FY25 performance reflects its data-driven strategies and focus on underserved markets.
Key Metrics
Metric
Q3 FY25
Q2 FY25
Growth (QoQ)
9M FY25
9M FY24
Growth (YoY)
AUM
11,067
10,157
9%
11,067
8,364
32%
Loan Disbursements
2,098
1,971
6%
5,215
4,311
21%
Total Income
385
343
12%
1,030
751
37%
Net Total Income
218
200
9%
583
436
34%
PAT
38
36
6%
103
87
19%
Key Drivers of Growth 1. GRO Score Credit Model The GRO Score, UGRO’s proprietary credit scoring model, evaluates MSMEs based on their potential rather than traditional collateral requirements. This innovative approach has secured a patent, setting UGRO Capital apart in the fintech space. Inclusivity: The model ensures financial access for underserved MSMEs. Efficiency: Facilitates quick and accurate credit decisions, reducing turnaround time.
2. Embedded Finance Expansion UGRO’s Embedded Finance platform achieved an AUM of INR 302 crore in Q3 FY25. This platform focuses on providing niche solutions tailored to specific MSME needs, leveraging partnerships with: 16 co-lenders 59 financial institutions 730 GRO partners These collaborations enhance liquidity and scalability, with 44% of UGRO’s AUM managed off-book. 3. Branch Network Growth UGRO added 74 new branches in FY25, focusing on Tier II and Tier III cities. This expansion strengthens UGRO’s presence in emerging markets, addressing the credit gap in underbanked regions. 4. Focus on Emerging Markets The Emerging Markets Secured Loans segment experienced a 202% YoY growth, with disbursements reaching INR 543 crore in Q3 FY25. This reflects UGRO’s dedication to promoting financial inclusion in rural and semi-urban areas.
Sustainability and Risk Management UGRO’s GNPA/NNPA ratios of 2.1%/1.5% underscore its robust risk management framework. The company mobilized INR 1,400 crore in debt during Q3 FY25, bringing its total debt to INR 6,151 crore, reflecting strong financial health and trust among investors. Vision 2026: Scaling Micro-Enterprise Lending UGRO aims to scale its micro-enterprise portfolio to 35% of AUM by FY26, aligning with the Government of India’s MSME growth initiatives. By leveraging technology, expanding partnerships, and refining its lending model, UGRO is poised to redefine MSME financing in India. Shachindra Nath remarked: Our vision is to empower MSMEs with tailored financial solutions. Through innovation and collaboration, we aim to create a sustainable and inclusive financial ecosystem.
About UGRO Capital UGRO Capital is a leading DataTech NBFC established in 2018. With a mission to bridge the MSME credit gap, UGRO combines technology-driven underwriting with strategic partnerships to deliver impactful financial solutions. The company serves over 1.6 lakh MSMEs, fostering growth and innovation in the sector. Conclusion UGRO Capital’s record-breaking Q3 FY25 performance highlights its commitment to financial inclusion and innovation. By leveraging its patented GRO Score model, expanding its branch network, and fostering strategic partnerships, UGRO is empowering MSMEs to thrive in a dynamic economic landscape.
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