U. Y. Fincorp Limited is an **RBI-registered Non-Banking Financial Company (NBFC)**, classified as an **Investment and Credit Company (NBFC-ICC)** and categorized under the **Base Layer (NBFC-BL)**. With over **31 years** of operational history, the company is currently undergoing a strategic transformation from a traditional lender into a technology-driven fintech powerhouse. The firm focuses on credit delivery to under-penetrated markets, leveraging a hybrid model of physical branch networks and digital fintech collaborations. --- ### **Strategic Pivot: The Fintech & Retail Transformation** The company is aggressively shifting its focus toward small-ticket consumer and business lending, supported by digital-first onboarding and geographical expansion. * **Brand 'GrowU.Money'**: This retail lending initiative serves as the company’s direct-to-consumer arm. It has expanded from pilot projects in **Lucknow** and **Kanpur** to a wider footprint across central and eastern **Uttar Pradesh**, including **Prayagraj, Varanasi, Ayodhya, and Gorakhpur**. * **Brand 'FUNDOBABA'**: Launched in **April 2025** via a contractual joint venture with **Fintech Cloud Private Limited (FCPL)**. This partnership scales small-ticket personal and business loans managed by FCPL under U. Y. Fincorp’s NBFC license. * **Digital Infrastructure**: The company has implemented an **automated tech platform** for mobile-based instant credit. This system has achieved a monthly disbursement run rate of approximately **₹100 Lakhs**, utilizing a data-driven **credit scoring model** to assess client creditworthiness. * **Geographic Realignment**: To align with its corporate leadership and the financial hub of India, the company received approval in **February 2026** to shift its **Registered Office** from **West Bengal** to **Mumbai, Maharashtra**. --- ### **Product Portfolio & Yield Profile** U. Y. Fincorp maintains a diversified lending book with interest rates for small-ticket segments ranging between **24% and 33% per annum**. * **Corporate Loans:** Unsecured loans with ticket sizes up to **₹25 Crores** targeting mid-sized corporates. This remains the largest segment, focusing on cash flow visibility. * **Personal Loans (STPL):** Specializing in Small Ticket Personal Loans **below ₹1 lakh** for individuals. * **Micro-enterprise Loans:** Targeted at self-employed individuals and small businesses. * **Loan Against Property (LAP):** A newly introduced secured lending segment as of **FY 2024-25**. * **Investments and Trading:** Active management of a securities portfolio. --- ### **Financial Performance & Capital Structure** The company demonstrated explosive growth in **FY 2023-24**, characterized by a **119%** increase in revenue and a **738%** surge in Profit After Tax (PAT). #### **Key Financial Indicators (₹ in Lakhs)** | Metric | 31st March 2024 | 31st March 2023 | 31st March 2022 | | :--- | :--- | :--- | :--- | | **Gross Sales & Other Income** | **12,185.29** | **5,557.17** | **8,489.64** | | **Profit After Tax (PAT)** | **6,492.23** | **774.54** | **321.32** | | **Equity Share Capital** | **9,511.92** | **9,511.92** | **9,511.92** | | **Reserves and Surplus** | **22,287.90** | **15,788.41** | **15,012.84** | #### **Capital Raising & Listing Status** * **Authorized Share Capital:** Increased from **₹100 Crores** to **₹225 Crores** in **February 2025**. * **Qualified Institutional Placement (QIP):** Approved raising up to **₹300 Crores** to fund the next growth phase. * **Exchange Listings:** Admitted to the main board of the **NSE** on **October 3, 2024**. The company voluntarily delisted from the **Calcutta Stock Exchange (CSE)** on **July 17, 2025**. * **Asset Monetization:** Sold **32,00,000** shares in **ANS Developers Pvt Ltd** for **₹81.24 Crores** to bolster liquidity. --- ### **Assets Under Management (AUM) Analysis** As of **March 31, 2025**, the total AUM stood at **₹27,475.34 Lakhs**, reflecting a **25.2%** year-on-year growth. | Segment | AUM (₹ in Lakhs) | % of Total AUM | | :--- | :--- | :--- | | **Corporate Loan** | **22,662.22** | **82.48%** | | **Personal Loans** | **3,885.25** | **14.14%** | | **Micro-Enterprise Loans** | **893.32** | **3.25%** | | **Loan Against Property** | **34.55** | **0.13%** | | **Total AUM** | **27,475.34** | **100.00%** | --- ### **Operational Reach & Distribution** The company utilizes a multi-channel distribution strategy to penetrate the underbanked "bottom of the pyramid" segments. * **Physical Presence:** Operates **2 branches** and partners with **6 Business Correspondents (BCs)**. * **Strategic BC Partnerships:** Actively exploring agreements with partners like **Virat India MFI** and **Rahi MFI** for deeper rural penetration. * **Customer Base:** Exceeded **3,800 customers** in Uttar Pradesh as of September 2025, with over **3,000 active users** added in the personal/business segments in late 2024 alone. --- ### **Risk Management & Governance Framework** U. Y. Fincorp employs a system-based risk approach utilizing **maker-checker controls**, **KYC/AML policies**, and **Expected Credit Loss (ECL)** models. #### **Asset Quality & Impairments** * **NPA Management:** Maintains a stringent credit policy with a target **NPA rate below 2%**. Management monitors **90-day overdue** accounts closely. * **Associate Liquidation:** The company holds a **33.33%** stake in **M/s Purple Advertising Services Private Limited**, which entered liquidation in **May 2022**. Due to the inability to consolidate financials, a full impairment of **₹900 Lacs** was recognized in **FY 2023-24**. * **Subsidiary Divestment:** Disposed of its entire stake in **Aristro Capital Markets Limited (ACML)** in **November 2022** to streamline operations. #### **Operational & Actuarial Risks** | Risk Category | Mitigation / Impact | | :--- | :--- | | **Liquidity Risk** | Monitoring maturity profiles to prevent mismatches between assets and liabilities. | | **Interest Rate Risk** | Balancing **fixed and floating rate** borrowings to protect margins. | | **Regulatory Risk** | Appointed **Prateek Kohli & Associates** as Secretarial Auditors for **FY26–FY30** to ensure compliance. | | **Gratuity Plan Risk** | Exposed to **Market Risk** (bond yields) and **Legislative Risk** (potential amendments to the Gratuity Act). | #### **Regulatory History** The company has previously faced penalties from the **BSE** for delays in disclosing related party transactions and for the non-consolidation of the liquidated associate company’s financials. Management has since reinforced governance protocols to prevent recurrence.