UGRO Capital Limited
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
UGRO Capital Limited is one of India’s leading Non-Bank Financial Companies, listed on the NSE and BSE, that is engaged in the business of lending and financing Micro, Small & Medium Enterprises. The company uses a data-driven approach to deliver timely and tailored credit solutions, thereby empowering (M)SMEs. With a focus on Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering, it serves more than 59,000 borrowers through a network of 104 branches across 15 states.
What is our funding objective?
The proceeds from this facility will be used to support UGRO to grow its Green portfolio (70%) and (M)SME portfolio (30%), with on-lending towards females and/or female led (M)SMEs or youth entrepreneurs. The long-term nature of the facility will enable UGRO to offer sustained support to (M)SMEs, both directly and through strategic partnerships.
Why do we fund this investment?
The investment contributes to FMO's goals in Climate Action (SDG 13) and RI (SDG 10).
What is the Environmental and Social categorization rationale?
The project has been categorised as E&S Category B, in accordance with FMO’s Sustainability Policy. In case of NBFC investments, the E&S classification is typically medium to low because the exposure generally is limited to retail and micro-entrepreneurs. No exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. All transactions are screened in line with UGRO’s exclusion list and in adherence to local law.
- Website customer/investment
- https://www.ugrocapital.com
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 1/26/2024
- Effective date
- 12/8/2023
- Total FMO financing
- INR 2496.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B