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Revenue-based financing platform Klub and non-banking financial company (NBFC) U GRO Capital on Thursday announced a partnership to disburse Rs 150 crore for micro, small and medium enterprises (MSMEs) in the country.
The companies will extend credit to support digital SMEs across different growth stages.
The allocated fund of Rs 150 crore will facilitate lending activities across the country while offering debt financing of up to Rs 30 crore in a single tranche through Klub’s platform.
“Given the pivotal role MSMEs play in India's economy and job market, addressing their credit requirement gap is a critical opportunity. Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach but also aligns with the value we deliver to SMEs through our product selection and superior customer experience,” said Sudharsan Venkatkrishnan, senior vice president, Klub.
Klub offers capital structures for businesses across all early and late-stage companies for activities such as recurring marketing, inventory, and capex expenses.
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After the COVID-19 pandemic, the ticket size of loans to MSMEs has been increasing gradually.
In the fourth quarter of calendar year 2024 (Q4CY24), the average ticket size of loans was pegged at Rs 23.4 lakh, up 21 per cent from Rs 19.3 lakh in Q2CY20 in the NBFC category, according to a joint report by Dun & Bradstreet and U GRO Capital.
“Together, we aim to provide flexible working capital solutions to SMEs, bolstering their growth. This partnership not only expands our market reach but also enhances our digital offerings, reinforcing our shared commitment to supporting and scaling businesses,” said Tanya Chadha, head - partnership & alliances, U GRO Capital.
