Ugro Capital announced a significant milestone in its mission to bridge the credit gap in India's MSME sector. The Company signed a commitment letter with the United States International Development Finance Corporation (DFC) for a USD 40 million (approx. Rs 330 crore) loan. The United States Agency for International Development (USAID) is supporting this transaction by committing its staff resources and linking its technical programs to support inclusive and sustainable economic growth.
This financing facility from DFC will mark the third impact deal for UGRO within a year. The Company has already raised ~INR 250 crore each through Non-Convertible Debentures (NCDs) from the prestigious Asian Development Bank (ADB) in January 2024 and FMO, the Dutch entrepreneurial development bank in December 2023. DFC's support will enable UGRO Capital to bolster its lending efforts to small and mediumsized businesses across India, with a focus on empowering women-owned enterprises. Approximately 70% of the funding will be directed to 2X qualifying businesses (women-owned or led), and at least USD 5 million of the proceeds will support new-to-credit borrowers, with the backing of the CGTMSE Guarantee.
Over the past six years, UGRO Capital has provided credit to over 100,000 MSMEs, playing a pivotal role in enabling financial access for underserved small businesses. This partnership with DFC reinforces the Company's ability to attract international capital and align with impact-driven global financial institutions to serve India's vast MSME sector.
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