Ugro Capital Limited
Status: Approved investmentWhy disclosure?
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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 (NBFC), listed on the NSE and BSE, and is engaged in lending and financing micro, small, and medium-sized enterprises (MSMEs). The company uses a data-driven approach to deliver timely and tailored credit solutions, thereby empowering MSMEs. With a focus on healthcare, education, chemicals, food processing/FMCG, hospitality, electrical equipment and components, auto components, and light engineering, it serves over 100,000 borrowers through a network of 210 branches across 30 states.
What is our funding objective?
All of the proceeds from this facility are used to support UGRO in growing its MSME portfolio, with on-lending towards women-owned or women-led SMEs (30%), youth-owned or youth-led SMEs (30%), Microenterprises (30%), and rural SMEs (10%). The transaction is structured as an investment into a listed Non-Convertible Debenture (NCD) and will enable UGRO to offer sustained support to MSMEs, both directly and through strategic partnerships.
Why do we fund this investment?
UGRO facilitates access to credit for underserved MSMEs across diverse sectors, thereby nurturing entrepreneurship and fostering job creation and sustainable, inclusive growth. The financing contributes to FMO's goals in Reducing Inequalities (RI, SDG 10) and is labelled 100% RI.
What is the Environmental and Social categorization rationale?
The project has been categorized as E&S Category B following FMO’s Sustainability Policy. In the case of NBFC investments, the environmental and social (E&S) risk classification is typically medium to low because the exposure is generally limited to retail and micro-entrepreneurs, and there is no exposure to activities on FMO’s exclusion list or that trigger any of the IFC Performance Standards (PSs). The company effectively manages E&S risks in the portfolio by implementing a basic E&S management system (ESMS), which includes an ESG scorecard and dedicated ESG personnel involved in the due diligence and monitoring processes.
More investments
| Date | Total FMO financing |
|---|---|
| 12/8/2023 | INR 2496.00 MLN |
- Website customer/investment
- https://www.ugrocapital.com
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 3/11/2025
- Effective date
- 2/17/2025
- Total FMO financing
- INR 2600.00 MLN
- Funding
- FMO NV
-
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