MSME lending: U GRO Capital aims ₹20,000 crore AUM by 2025

KR Srivats New Delhi | Updated on August 13, 2021

Will soon go live with co-lending partnership with SBI

U GRO Capital, a digital first NBFC focused on MSME lending, aims to achieve assets under management (AUM) of ₹20,000 crore by 2025, its Chairman and Managing Director, Shachindra Nath, said.

This NBFC, already listed in the BSE, was added to the National Stock Exchange on Wednesday.

“The second wave of Covid-19 did impact us. However, we will still more than double our AUM this fiscal going by our current rate. Our aspiration is to take about 1 per cent market share of outstanding MSME credits in India by opening around 270 branches in the next few years,” Nath told BusinessLine.

The company had achieved an AUM of ₹1,561 crore as of July end this year, against ₹1,375 crore as of June 30, 2021 and ₹847 crore as of June 30 last year. U GRO Capital currently has 34 branches, and it aims to hit 100 by the end of FY2021-22.

Cumulative disbursement has crossed ₹3,000 crore and monthly disbursal crossed ₹250 crore in July 2021.

Also see: Public sector banks report sharp slippages in MSME loans in Q1

U GRO Capital was instituted in 2017 by Shachindra Nath, with the buyout of Chokhani Securities Limited. This was followed by its recapitalisation and rebranding with a tech enabled business lending model. The company has raised about ₹920 crore of capital from a diversified set of institutional investors like private equity funds and family offices.

Partnership with SBI

Nath added that U GRO Capital will soon go live with its co-lending partnership with State Bank of India (SBI).

“We are already live with our co-lending partnership with Bank of Baroda. We will soon go live with SBI and may also enter into a co-lending agreement with one more public sector bank this fiscal,” he said.

For the first quarter ended June 30, U GRO Capital recorded a profit after tax of ₹1.75 crore on a total income of ₹51.3 crore. The company had recorded a PAT of ₹1.55 crore on a total income of ₹48.7 crore in the previous quarter (January-March 2021).

On a year-on-year basis, the company recorded a net profit of ₹3.73 crore on a total income of ₹30.78 crore in the same quarter last fiscal.

Published on August 12, 2021

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