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This rating is applicable for UGRO Capital’s bank loan of INR 5,000 mn

India Ratings and Research (Ind-Ra) has rated UGRO Capital Limited’s bank

loans ‘IND A’/Stable. This rating reflects UGRO Capital's diverse product offering for MSMEs, as well as its geographic and sectoral diversification, strong analytics and usage of data science, adequate capital buffering and diversified borrowing profile.

UGRO Capital has invested in technology infrastructure, data analytics, human resources, and systems and processes in order to expand the franchisee in the short to medium term. The company has an experienced management team with lending and technology expertise and employs a hybrid of physical and digital frameworks for sourcing, underwriting, disbursements, and collections. On the underwriting side, UGRO Capital uses a data science-based credit decisioning model which underwrites loan proposals using bureau data, banking data and GST data.

Mr. Shachindra Nath, Vice Chairman and Managing Director of UGRO Capital said, “At UGRO Capital, we have already assisted over 38,000 MSMEs and disbursed over INR 10,500 crores. This rating reaffirms the strength of the organization and its leadership along with the financial and operational excellence. This is an important step in our journey to become a leader in the MSME lending space, and it demonstrates our commitment to building a strong institution.”

UGRO Capital is a DataTech NBFC and pioneer of LaaS in India. It continued its growth momentum in the third quarter of FY23 and crossed INR 5,000 Cr AUM market. UGRO Capital’s AUM stood at INR 5,095 Cr (as on Dec’22), up 97% compared to Dec’21. The company’s Total Income Q3’23 stood at INR 189.6 Cr (up 123% YoY and 22% QoQ) and INR 466.6 Cr for 9M’23 (up 134% compared to 9M’FY22).

UGRO Capital has effectively leveraged the co-lending partnerships with off-book AUM at 35%, up from 29% as of September 2022. It has achieved its FY23 guidance of 35% off book AUM mix a quarter in advance. UGRO Capital has collaborated with ten co-lending partners, over 65 lenders, 25 fintechs, and 1,000 GRO partners to provide data-backed customized credit solutions to a large number of borrowers in the country's 150+ small tier 2 towns.

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