The DataTech NBFC advances towards becoming India’s largest small business financing institution
FinTech BizNews Service
Mumbai, October 22, 2024: UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its robust financial performance for the Second Quarter and Half Year ended September 30, 2024. Advancing on its journey of creating the Largest Small Business Financing Institution driven by Data and Technology, the Company reported its Assets Under Management (AUM) of INR 10,157 Cr as of September 2024, underscoring its sustained momentum and commitment to building a leading platform for MSME credit in India. The INR 10,000 Cr AUM milestone and this surge can be attributed to increasing net loan origination, opening of 46 new micro branches, highest-ever disbursement by the Micro Channel, high co-lending volumes, and the highest-ever borrowings mobilization.
In terms of financials, UGRO Capital highlighted a Total Income of INR 644 Cr for H1’25, up 37% YoY, while the figure stood at INR 343 Cr for Q2’25, up 35% YoY and 14% QoQ. Furthermore, the PAT for H1’25 scaled up to INR 66 Cr, up 22% YoY and was INR 36 Cr for Q2’25, marking an impressive 23% YoY and 17% QoQ increase. The company achieved net disbursements of INR 3,118 Cr, reflecting a 13% growth, with Q2 FY25 disbursements reaching INR 1,971 Cr, up 72% QoQ. The asset quality is maintained with GNPA/NNPA at 2.1%/1.3% of total AUM. As of September 2024, total debt stood at INR 5,344 Cr, supported by a strong capital position with a CRAR of 24.5%. UGRO's improving financial performance was further recognized with a ratings upgrade from India Ratings to IND A+/Stable (long-term) and IND A1+ (short-term).
The robust quarterly performance, alongside the optimal GNPA/NNPA metrics of 2.1%/1.3% on the total AUM, reiterates the quality of UGRO's portfolio, underscoring a well-structured risk management approach. UGRO Capital's distinctive co-lending approach, combined with the strategic use of co-lending partnerships, accounting for 44% off-book AUM, has significantly propelled this growth trajectory.
Further solidifying its reputation, UGRO Capital has extended data-driven bespoke finance solutions to over 100,000 MSMEs across India, in collaboration with 16 co-lending partners, 58 lenders, over 50 fintechs, and over 650 GRO partners. With an improving performance, UGRO Capital reiterates its focus on empowering MSMEs through its technology-led platform, solidifying its role as a pivotal player in India's financial ecosystem.
Commenting on the results, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital said, “Crossing the INR 10,000 Cr AUM milestone highlights the strength of our DataTech infrastructure, vast geographical reach, and distribution network. This achievement reinforces our commitment to building a financially inclusive ecosystem for MSMEs across India. With increasing loan originations, co-lending volumes and 210 branches, we are ready to accelerate our focus on the small business segment. This is just the beginning of our journey toward becoming India’s largest small business financing institution, driven by our core belief: MSME Accha Hai.”
