### **Overview** Ugro Capital Ltd (NSE: UGROCAP, BSE: 511742) is a leading **data and technology-driven non-banking financial company (NBFC)** focused on bridging India's vast MSME credit gap. Listed as India’s first data-tech lending platform, UGRO leverages advanced analytics, artificial intelligence (AI), machine learning (ML), and a hybrid physical-digital distribution model to deliver customized, on-tap financing to micro, small, and medium enterprises across India. With a bold vision of capturing **1% of India’s MSME lending market** within the next three years, UGRO combines sectoral expertise, robust credit underwriting, and scalable infrastructure to serve underserved businesses—from small retailers in Tier 2/3 towns to large manufacturing units in metro cities. --- ### **Strategic Highlights (as of November 2025)** #### **1. Flagship Acquisitions & Expansion into Embedded Finance** - **Acquisition of MyShubhLife (MSL):** In November 2025, UGRO completed the acquisition of **MyShubhLife (MSL)**, a leading embedded finance platform targeting 3 crore digital merchants. - **MSL Impact on AUM:** As of September 2025, the integration contributed **INR 1,270 crore to AUM**, with a monthly disbursement run rate of **INR 150–200 crore**. - The acquisition enabled UGRO to serve **over 1.5 lakh customers** via real-time, automated credit disbursal integrated into ERP and payment systems. - MSL has become a key driver of **retailer financing**, tapping into an estimated **$20 billion annual credit gap** for small retailers, with a broader addressable market of **45 million digital merchants** and $22 billion annual credit demand. #### **2. Technology & Data-Driven Lending Framework** UGRO has built a **proprietary tech stack** that powers its entire lending lifecycle: - **GRO Score 3.0:** An AI/ML-driven credit underwriting engine—patented and industry-first—that uses a “data tripod” of **GST records, banking statements, and credit bureau data** to assess cash flow and risk profile. - Processes over **102,000 GST records**, **310,000 bank statements**, and **750,000 bureau records**. - Enables **in-principle approval within 60 minutes** and disbursements in **under 48 hours**. - Supports **on-tap, consumer-like financing** for MSMEs with a high predictive accuracy across geographies and sectors. - **Proprietary Platforms:** - **GRO Plus:** Intermediated sourcing via DSA partners. - **GRO Chain:** End-to-end automated supply chain financing with invoice-based lending. - **GRO Xstream:** Co-lending platform enabling partnerships with banks and NBFCs. - **GRO X:** Embedded finance platform for digital lending via fintech integrations. - **Digital Infrastructure:** Fully automated workflow, ML-based OCR, real-time policy engine (BRE), and centralized data lake. --- ### **Business Model & Multi-Channel Strategy** UGRO operates through a **multi-channel, multi-product, and multi-geography strategy**, enabling it to serve a diverse base of MSMEs. #### **Distribution Channels:** | Channel | Focus | Key Metrics | |-------|-------|----------| | **Prime Intermediated (Metro & Tier 1/2)** | MSMEs (INR 1–15 crore turnover) | 44% of AUM; Avg. ticket: Secured loans (₹89L), Biz loans (₹19L), Machinery (₹46L); Yield: 14–19% | | **Emerging Market (EM)** | SMEs in Tier 2/3/4 (turnover < ₹3Cr) | 25% of AUM; Secured loans (avg. ₹17L), 19% yield, 10-year tenure | | **Ecosystem Channel** | Green & supply chain (OEM partnerships) | 11% of AUM; Green assets, machinery finance (avg. ₹36L), 14% yield, 4-year tenure | | **Digital & Alliances (incl. MSL)** | Embedded finance via fintechs, digital platforms | Rapidly growing; ~30% MoM disbursement growth post-acquisition | #### **Product Portfolio:** - Secured & Unsecured Business Loans - Loans Against Property (LAP) - Machinery & Equipment Financing - Rooftop Solar & Green Asset Loans - Embedded Finance & Retailer Financing via MSL --- ### **Financial & Operational Performance** - **AUM (Assets Under Management):** - **Total AUM:** Crossed **INR 10,000 crore (FY25)** with continued momentum. - **EM Segment AUM:** **INR 2,997 crore** (25% of total), with an aim to grow to **32–35%** by March 2026. - **Off-Balance Sheet AUM:** **~43%** held via **co-lending partnerships (GRO Xstream)** with 16 banks and NBFCs—up from 42% in FY25. - **Branch Network:** - **303 EM branches** across **13 states**. - 29 branches already achieving **INR 1 crore+ monthly productivity**. - 86 branches expected to “mature” in 12 months, and 188 more in 18 months—indicating **imminent path to profitability**. - **Customer Base:** Served over **233,000 MSMEs** since inception. --- ### **Sustainability & Inclusion Focus** - **Green Lending:** Active in rooftop solar and EV financing; partnerships with OEMs in precision engineering, CNC, and medical equipment. - **Women Entrepreneurship:** "Narayani" program offers preferential terms to women-led businesses. - **Financial Inclusion:** Focused on Tier 2/3 and “micro enterprise” segment, enabling formal credit access to first-gen entrepreneurs. ---