Raising the Bar: UGRO Capital Plans ₹300 Crore Fundraise for Expansion

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UGRO Capital Ltd’s board is set to consider and approve a capital raising initiative to boost its funds for scaling operations. This move underscores UGRO’s focus on expanding its lending capacity, strengthening its balance sheet, and supporting MSME financing growth in emerging markets.

UGRO Capital Ltd, a prominent DataTech NBFC specializing in small business lending, is preparing to consider and approve a key capital raising transaction as part of its strategic growth plan. This initiative is designed to enhance UGRO’s capital base, enabling the company to increase lending to underserved MSMEs and seize expanding market opportunities.

Capital Raise Initiative

The board is convening to review options for raising funds, including potential issuance of equity or debt instruments such as secured Non-Convertible Debentures (NCDs) or rights issues.

Recent capital raises have successfully strengthened UGRO’s balance sheet, boosting its Assets Under Management (AUM) to over ₹12,000 crore by June 2025, representing a 31% year-on-year growth.

The planned raise will support further portfolio expansion and possibly finance strategic acquisitions, such as the recent Profectus Capital merger.

Growth and Market Position

UGRO Capital operates at the intersection of data analytics and lending, using DataTech capabilities to customize credit offerings and underwriting for small business borrowers.

The company is expanding rapidly into emerging markets with over 300 operational branches and a growing Embedded Finance platform serving partners like PhonePe and BharatPe.

The capital raise is expected to maintain strong capital adequacy, underpinning UGRO’s steady credit growth while ensuring a robust risk profile.

Strategic Outlook and Investor Confidence

UGRO’s leadership emphasizes proactive capital management and disciplined growth, intending to maximize shareholder value and broaden financial inclusion across India’s MSME sectors.

Ongoing and planned capital inflows position UGRO competitively to capture rising credit demand for machinery finance, LAP, supply chain finance, and school financing.

Investors and analysts will watch closely for the board’s approval and the details of the capital raising instrument to evaluate the company’s next growth phase.

This upcoming capital raise by UGRO Capital Ltd illustrates a committed approach to scaling targeted credit delivery using innovative data-driven approaches while fortifying financial strength for future expansion.

Sources: MarketScreener, UGRO Capital Official Releases.

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Raising the Bar: UGRO Capital Plans ₹300 Crore Fundraise for Expansion

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