DataTech NBFC U GRO Capital has raised ₹250 crore from the Dutch Entrepreneurial Development Bank FMO through rupee-denominated non-convertible debentures (NCDs).
Aleksandra Gazy, Senior Investment Officer at FMO, said that the association will help strengthen the fund’s commitment towards greater financial inclusion in India.
The MSME-lending-focused NBFC has provided credit to more than 80,000 small businesses. Prior to this, it had raised ₹240 crore from Denmark’s Investment Fund for Developing Countries (IFU) in May 2023.
“This transaction is proof of U GRO Capital’s ability to forge partnerships with and attract funding from reputed global DFIs (development finance institutions). Impact investors are critical funding partners in enabling us to bridge India’s massive credit gap in the MSME sector, and we will continue to leverage our technology and credit expertise to service MSMEs across the spectrum via our multi-channel distribution model,” said U Gro Founder and MD Shachindra Nath.
Of the NBFC’s total borrowings, around 20 per cent are from development financial institution and impact funds such as ResponsAbility, Calvert Impact Capital, Enabling Qapital, SIDBI, and others.