22
MSME-focused lending company UGRO Capital has raised Rs 380 crore from the Netherlands-
based development finance institution FMO through the issuance of 38,000 non-convertible
debentures (NCDs).
The NCDs are senior, secured, rated, listed, redeemable and transferable instruments with a five-year tenure. FMO has fully subscribed to the issue. This is FMO's third investment in UGRO Capital in less than three years. The development finance institution had invested Rs 250 crore in the company through NCDs in December 2023 and another Rs 260 crore in February 2025.
UGRO Capital said the latest funding will be used primarily to provide loans to women-owned and women-led businesses, youth-owned and youth-led enterprises, and rural small and medium enterprises (SMEs). Part of the funds will also support financing or refinancing of eligible green projects.
The company provides loans to small businesses that often find it difficult to access credit from traditional lenders because of limited financial and tax records.
UGRO Capital uses its proprietary GRO Score system to assess borrowers using factors such as banking cash flows and other business information. Its Emerging Market portfolio focuses on businesses with annual turnover of less than Rs 3 crore, with an average loan size of around Rs 18 lakh.
Nearly 80% of this portfolio is located in Tier-3 towns and smaller markets, according to the company.
UGRO also operates GROx, an embedded finance platform that provides working capital to small merchants, including kirana stores, agricultural-input dealers and pharmaceutical distributors. The average loan size on the platform is around Rs 1 lakh.
In the first quarter of FY27, GROx disbursed Rs 1,853 crore, while its assets under management (AUM) rose 32% quarter-on-quarter to Rs 3,003 crore. UGRO Capital currently has around 3.4 lakh active customers and originates more than 60,000 loans every month.
Its Emerging Market business operates through 317 branches across 13 states, with more than 2,500 employees. As of June 30, 2026, the Emerging Market and GROx portfolios together accounted for 46% of the company's total AUM, up from 32% in December 2025.
UGRO Capital has raised more than Rs 1,300 crore in debt from development finance institutions and impact-focused investors, including FMO, the Asian Development Bank, IFU, Triple Jump, BlueOrchard and other institutional investors.
The company said the latest funding will add to its longer-term institutional funding base as it expands lending to smaller businesses and underserved markets.
The NCDs are senior, secured, rated, listed, redeemable and transferable instruments with a five-year tenure. FMO has fully subscribed to the issue. This is FMO's third investment in UGRO Capital in less than three years. The development finance institution had invested Rs 250 crore in the company through NCDs in December 2023 and another Rs 260 crore in February 2025.
UGRO Capital said the latest funding will be used primarily to provide loans to women-owned and women-led businesses, youth-owned and youth-led enterprises, and rural small and medium enterprises (SMEs). Part of the funds will also support financing or refinancing of eligible green projects.
The company provides loans to small businesses that often find it difficult to access credit from traditional lenders because of limited financial and tax records.
UGRO Capital uses its proprietary GRO Score system to assess borrowers using factors such as banking cash flows and other business information. Its Emerging Market portfolio focuses on businesses with annual turnover of less than Rs 3 crore, with an average loan size of around Rs 18 lakh.
Nearly 80% of this portfolio is located in Tier-3 towns and smaller markets, according to the company.
UGRO also operates GROx, an embedded finance platform that provides working capital to small merchants, including kirana stores, agricultural-input dealers and pharmaceutical distributors. The average loan size on the platform is around Rs 1 lakh.
In the first quarter of FY27, GROx disbursed Rs 1,853 crore, while its assets under management (AUM) rose 32% quarter-on-quarter to Rs 3,003 crore. UGRO Capital currently has around 3.4 lakh active customers and originates more than 60,000 loans every month.
Its Emerging Market business operates through 317 branches across 13 states, with more than 2,500 employees. As of June 30, 2026, the Emerging Market and GROx portfolios together accounted for 46% of the company's total AUM, up from 32% in December 2025.
UGRO Capital has raised more than Rs 1,300 crore in debt from development finance institutions and impact-focused investors, including FMO, the Asian Development Bank, IFU, Triple Jump, BlueOrchard and other institutional investors.
The company said the latest funding will add to its longer-term institutional funding base as it expands lending to smaller businesses and underserved markets.
