UGRO Capital Ltd has formally approved the amalgamation of Profectus Capital into its operations, following the completion of its acquisition in late 2025. The merger is expected to deliver significant AUM growth, profitability gains, and operational synergies, positioning UGRO as a leading DataTech NBFC focused on MSME financing in India.
UGRO Capital Ltd, a prominent DataTech NBFC specializing in MSME lending, has announced board approval for the amalgamation of Profectus Capital. This move follows the Reserve Bank of India’s nod and the acquisition completed in December 2025.
The merger is designed to consolidate UGRO’s lending portfolio, expand its assets under management (AUM), and enhance profitability through operational efficiencies. With Profectus Capital’s ₹3,468 crore AUM added, UGRO’s consolidated AUM now stands at ₹15,471 crore, marking a 29% increase. The transaction also brings in ₹150 crore annualized profit accretion and an estimated ₹115 crore in operating synergies, strengthening return ratios and capital productivity.
Industry experts view this amalgamation as a transformative step for UGRO, enabling it to scale rapidly and reinforce its ambition to become India’s leading MSME-focused financial institution.
Notable Updates / Major Takeaways
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Board Approval: UGRO Capital approves amalgamation of Profectus Capital.
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AUM Growth: Consolidated AUM rises to ₹15,471 crore (29% increase).
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Profitability: ₹150 crore annualized profit accretion.
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Synergies: ₹115 crore in operating efficiencies; improved return on assets.
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Strategic Aim: Strengthen MSME lending ecosystem with DataTech-driven solutions.
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Regulatory Context: RBI approval already secured for acquisition.
Sources: Financial Express; ETBFSI; UGRO Capital official press release