MSME lender U Gro Capital raises ₹250 crore from Dutch growth financial institution

DataTech NBFC U GRO Capital has raised ₹250 crore from the Dutch Entrepreneurial Improvement Financial institution FMO by rupee-denominated non-convertible debentures (NCDs).

Aleksandra Gazy, Senior Funding Officer at FMO, mentioned that the affiliation will assist strengthen the fund’s dedication in the direction of higher monetary inclusion in India.

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The MSME-lending-focused NBFC has offered credit score to greater than 80,000 small companies. Previous to this, it had raised ₹240 crore from Denmark’s Funding Fund for Growing Nations (IFU) in Could 2023.

“This transaction is proof of U GRO Capital’s capacity to forge partnerships with and entice funding from reputed world DFIs (growth finance establishments). Affect traders are essential funding companions in enabling us to bridge India’s large credit score hole within the MSME sector, and we are going to proceed to leverage our expertise and credit score experience to service MSMEs throughout the spectrum by way of our multi-channel distribution mannequin,” mentioned U Gro Founder and MD Shachindra Nath.

Of the NBFC’s whole borrowings, round 20 per cent are from growth monetary establishment and impression funds corresponding to ResponsAbility, Calvert Affect Capital, Enabling Qapital, SIDBI, and others.