UGRO Capital sets new benchmark with record-breaking loan disbursals in Q3 FY25

UGRO Capital Limited, a prominent DataTech non-banking financial company (NBFC) specialising in micro, small, and medium enterprise (MSME) lending, announced stellar financial results for the third quarter and nine-month period ending December 31, 2024. The company achieved its lifetime-high quarterly loan origination of ₹2,098 crore, marking a 35% year-on-year (YoY) surge. This figure surpasses the ₹1,552 crore disbursed in Q3 FY24, underscoring UGRO Capital’s growing impact on the MSME lending ecosystem.

The company’s assets under management (AUM) reached ₹11,067 crore, reflecting a 32% YoY increase and a 9% quarter-on-quarter (QoQ) growth. UGRO Capital attributed this progress to its innovative credit solutions, the expansion of its branch network, and the success of its embedded finance model. The company also opened 74 new branches in emerging markets during the nine-month period, significantly bolstering its reach in underserved areas.

How is UGRO Capital driving growth through DataTech innovation?

UGRO Capital has built its reputation as a leader in DataTech-driven MSME lending by employing proprietary technologies to enhance credit accessibility. A cornerstone of this success is the GRO Score, a credit-scoring model based on artificial intelligence and machine learning. This innovative tool has transformed risk evaluation, allowing MSMEs to access financing more efficiently.

The company’s embedded finance solutions also witnessed robust growth, achieving an AUM of ₹302 crore through its GRO Xstream platform. This growth aligns with UGRO Capital’s broader mission of bridging the MSME credit gap in India, a sector often overlooked by traditional financial institutions.

In addition, the company’s co-lending partnerships remain a critical driver of its expansion. Collaborations with 16 co-lenders, over 60 fintech firms, and 730+ GRO partners have enabled UGRO Capital to offer tailored financial products to more than 1.6 lakh MSMEs across India.

What financial achievements underscore UGRO Capital’s resilience?

UGRO Capital reported total income of ₹385 crore for Q3 FY25, representing a 38% YoY increase and a 12% QoQ growth. For the nine-month period, income rose to ₹1,030 crore, a 37% YoY improvement. These figures highlight the company’s ability to sustain growth despite economic challenges.

Profit after tax (PAT) for Q3 FY25 stood at ₹38 crore, up 15% YoY, while nine-month PAT reached ₹103 crore, reflecting a 19% YoY rise. UGRO Capital also recorded its highest-ever debt mobilisation of ₹1,400 crore during the quarter, bringing its total debt to ₹6,151 crore. This achievement further strengthens its financial position and demonstrates the scalability of its business model.

What sets UGRO Capital apart in the MSME lending sector?

UGRO Capital’s data-driven approach and commitment to innovation differentiate it from competitors in the MSME lending space. By leveraging advanced analytics and customised sourcing platforms, the company has optimised its credit delivery process. Tools like GRO Plus and GRO Chain provide end-to-end financing solutions, ensuring seamless integration across supply chains.

Founder and Managing Director Shachindra Nath highlighted the significance of these innovations, stating that the GRO Score patent and branch network expansion reflect the company’s dedication to empowering underserved markets. Nath also noted UGRO Capital’s ambitious goal to scale its micro-enterprise portfolio to 35% of its total AUM by March 2026.

What lies ahead for UGRO Capital?

UGRO Capital’s vision of capturing a 1% market share in India’s MSME credit sector over the next three years demonstrates its long-term commitment to financial inclusion. The company’s strategic focus on data-driven lending and co-lending partnerships positions it as a transformative force in the industry.

With a robust risk management framework and a growing presence in emerging markets, UGRO Capital is poised to address the credit needs of India’s MSME sector. By continuing to innovate and expand, the company aims to solidify its role as a leader in technology-enabled lending solutions.