Ugro Capital hit an upper circuit of 10% at Rs 197.05 after State Bank of India inducted the company as the first co-lending partner for its Sanjeevani program to finance micro, small and medium enterprises (MSME).
Through this collaboration, SBI and Ugro Capital aim to disburse upto Rs 500 crore by March 2022.The arrangement will extend credit products under Ugro's Sanjeevani program, offering loans upto Rs 3 crore, at competitive rate of interest.
Ugro Capital had launched 'Sanjeevani' as a solution to provide credit to pandemic impacted MSME sector as an end-to-end digital lending program in June 2020. It has disbursed over Rs 750 crore as of 31 October 2021.
Shachindra Nath, executive chairman and managing director, Ugro Capital said: "India's lending landscape for NBFCs is transitioning, we believe that next decade is all about collaboration between large banks and niche NBFCs / FinTech wherein Lending as a Service would become the prominent force."
Net profit of Ugro Capital declined 80.33% to Rs 3.38 crore on 80.07% rise in total income to Rs 62.70 crore in Q2 September 2021 over Q2 September 2020.
Ugro Capital is an MSME lending fintech platform. It uses the emerging data tripod of GST, banking and bureau coupled with its sectoral analysis to solve the problem of credit for small businesses. The company has raised about Rs 2500 crore of equity & debt capital from marquee private equity investors, family offices, banks and other financial Institution over last 3 years.
Ugro Capital currently has 55 branches across 9 states. It aims to expand the branch network to 100 by FY2022. By 2025, Ugro envisions to achieve 1% market share of outstanding MSME credit in India and serve 1 million customers.
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