U Gro Capital

What U Gro Capital does

U Gro Capital Limited (NSE: UGROCAP) is a Mumbai-headquartered, publicly listed non-banking financial company (NBFC) founded in 1993 that operates a DataTech lending platform focused exclusively on India's underserved micro, small and medium enterprise (MSME) segment. As of March 2026 the company serves approximately 321,000 MSME borrowers across India through a 317-branch direct network concentrated in tier-2 and tier-3 emerging markets, with consolidated assets under management of roughly ₹15,334 crore and a workforce of 2,900+ employees.

The platform is anchored by three core lending products — Loan Against Property (LAP), Embedded Financing (delivered via the wholly-owned subsidiary MyShubhLife), and Machinery & Equipment Finance — augmented by sector-specific variants including supply chain finance, electric vehicle financing, rooftop solar finance, doctor's loans and educational institute loans. Underwriting is centralized in GRO Score 3.0, a proprietary AI/ML model that integrates credit bureau, banking statement and GST data and is combined with sector-clustered cash-flow models across nine homogeneous MSME verticals. The company monetizes through interest income on loans priced off the UGRO Reference Rate (currently 15.95% p.a.), upfront processing fees of up to 4%, penal and prepayment charges, co-lending yield-sharing with bank and NBFC partners, and embedded finance revenue from MyShubhLife merchant credit. Distribution combines direct branch sales, a digital self-serve lead portal, a first-mover GeM Sahay government marketplace integration, an LSP/DSA connector network, and co-lending partnerships with marquee institutions including SBI, Bank of India, Central Bank, Poonawalla Fincrop, Hinduja Leyland Finance, Tata Capital and Mahindra Finance.

Name

U Gro Capital

Legal name

UGRO Capital Limited

Website

https://ugrocapital.com

Company type

Public

Founded year

1993

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

U Gro Capital is a publicly listed Indian NBFC that lends to underserved MSMEs through a proprietary AI/ML underwriting platform (GRO Score 3.0), a 317-branch network and embedded finance subsidiary MyShubhLife.

Ownership category

akta.pro rank

Product category

MSME Business Lending (NBFC)

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

General SME & Middle-Market Commercial Banking (FSABABAA)

akta.pro secondary industry

SME Trade Finance & Working Capital (LCs, Guarantees, Receivables) (FSABABAF)

Keywords

• MSME business lending
• Loan against property
• Embedded finance
• Equipment financing
• Cash-flow lending

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Supply Chain

Revenue model

1. Interest income on loans: Primary revenue from interest charged on Loan Against Property (LAP), Machinery & Equipment Finance, Embedded Financing and other MSME credit products, offered at fixed or floating rates linked to UGRO Reference Rate (URR).
2. Loan processing fees: Upfront processing fees of up to 4% of loan amount, deducted from disbursement and non-refundable. Also subject to GST and other government levies.
3. Penal / late payment charges and prepayment fees: Charges collected on delayed or defaulted repayments, plus prepayment/foreclosure charges per schedule of charges (subject to RBI exemptions for MSE floating-rate loans up to ₹50 lakhs).
4. Co-lending and embedded finance income: Income from co-lending arrangements with banks/NBFCs and from embedded finance partnerships (including MyShubhLife) that share yield and risk on originated loans.

Pricing tiers

Go-to-market motion6 records

Distribution channels7 records

Marketing channels9 records

Core offering

U Gro Capital is a publicly listed Indian NBFC that provides secured and unsecured business loans to underserved MSMEs, primarily through Loan Against Property (LAP), Embedded Financing (via MyShubhLife), and Machinery & Equipment Finance. Its offerings are underwritten by a proprietary AI/ML credit scoring engine (GRO Score 3.0) that uses credit bureau, banking statement, and GST data, with sectoral clustering across nine MSME verticals and a pan-India distribution footprint of 317 branches.

Product overview

UGRO Capital Limited operates a single unified DataTech lending platform (NSE/BSE-listed) with a platform-plus-modules architecture built around three core secured/unsecured business loan products: Loan Against Property (LAP), Embedded Financing (delivered through the acquired MyShubhLife fintech subsidiary), and Machinery & Equipment Finance. These are supported by GRO Score 3.0, the proprietary AI/ML underwriting and credit scoring engine that powers decisioning across the entire portfolio using credit bureau, banking statement, and GST data. The Profectus Capital acquisition added a separate secured asset book (including a school financing vertical) and is being integrated as a sub-platform. Around the core, UGRO offers a set of sector-specific sub-product modules — Business Loans Without Collateral, Supply Chain Finance, Retailer Finance, Educational Institutes (EDI) Loan, Loan Against Bank Guarantee/Fixed Deposits, Electric Vehicle Financing, Doctor's Loan, Green Asset Supply Chain Financing, and Rooftop Solar Finance — and operates the GEM-Sahay cash flow lending product as a government marketplace integration. The portfolio is delivered through 300+ branches and a co-lending partner network (SBI, BOI, Central Bank, Poonawalla Fincorp, Hinduja Leyland Finance, Tata Capital, Mahindra Finance).

Differentiator

Problem solved

Functional benefit

Products and services

• Loan Against Property (LAP) Secured business loan product where MSMEs pledge residential, commercial, or industrial property as collateral. UGRO's flagship emerging-markets offering delivered through 300+ branches, positioned as the primary high-yield vertical (18-22% yields) under the post-FY26 strategic realignment. Includes LAP up to Rs 50 lakh offered at fixed rates per RBI Master Direction 2025.
• Embedded Financing Tech-enabled merchant-led embedded finance product that delivers credit to MSMEs at the point of business need through partnerships with fintech platforms and payment ecosystems. Operated via the wholly-owned subsidiary MyShubhLife, targeting onboarding of 200,000 new retailers and exceeding 25% yields under the strategic pivot.
• Machinery and Equipment Finance Secured financing product for MSMEs to purchase or upgrade machinery and equipment, used for capacity expansion, modernization, and capital expenditure. Up to Rs 50 lakh ticket size offered at fixed rate of interest per RBI's Pre-payment Charges on Loans Directions, 2025.
• Business Loans Without Collateral (Unsecured Business Loans) Unsecured business loan product for MSMEs that do not have property or assets to pledge, including a working capital loan variant. Approved based on creditworthiness, business performance, and cash flow assessment using GRO Score 3.0, with quicker approval and flexible usage for working capital, inventory, and operational expenses.
• Supply Chain Finance Sub-product offering financing solutions for MSME participants across supply chains, including Green Asset Supply Chain Financing for environmentally aligned supply chain participants.
• Retailer Finance Sub-product aimed at providing financing to retailers, operated primarily through the MyShubhLife embedded finance platform to support merchant-led credit delivery.
• Educational Institutes (EDI) Loan Specialized loan product for educational institutes, supported by the school financing opportunity identified within the Profectus Capital acquisition portfolio.
• Loan Against Bank Guarantee or Fixed Deposits Secured loan product where MSMEs can pledge bank guarantees or fixed deposits as collateral to obtain financing.
• Electric Vehicle Financing Specialized financing product for MSME customers purchasing electric vehicles, aligned with India's growing EV adoption and supportive government policies.
• Doctor's Loan Specialized loan product tailored for medical practitioners, sitting within UGRO's sector-specific MSME lending portfolio.
• Green Asset Supply Chain Financing Sub-product that provides supply chain financing for green and sustainable assets, supporting UGRO's climate finance and financial inclusion objectives.
• Rooftop Solar Finance Specialized financing product for rooftop solar installations, supporting MSMEs investing in renewable energy and clean tech adoption.
• GEM Sahay Cash Flow Lending Product Joint UGRO Capital–GEM Sahay cash flow lending product on the Government e-Marketplace (GeM) platform. UGRO is the 1st wave lender on Sahay, enabling MSMEs to obtain a loan by tapping and accepting the UGRO Capital offer in a matter of seconds, with GeM acting as the Loan Service Provider (LSP).

Quantifiable outcome

• AUM grew from ~₹3,000 crore in 2020 to ~₹15,334 crore as of March 2026 (approximately 5x growth in 6 years)
• +6 more outcomes

Named customers7 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability5 records

Feature4 records

Partnerships

Five partnerships are on record, tiered minor - debt investor relationship, flagship acquisition / secured asset book, flagship subsidiary for embedded finance, flagship embedded distribution partner and flagship research partner.

• Recur Clubminor - debt investor relationshipChannel Partner/ Reseller/ Distributor · 3 May 2026UGRO Capital participated as one of the debt providers in Recur Club's $50 million funding round (comprising $8M equity led by InfoEdge Ventures plus $42M debt from financial institutions including UGRO Capital, Incred, and Lighthouse Canton). Recur Club is a Delhi-based debt marketplace for startups and SMEs.
• Profectus Capitalflagship acquisition / secured asset bookStrategic or Co-development Partner · 8 December 2025UGRO Capital completed the acquisition of Profectus Capital in July 2025 for Rs 1,400 crore ($161.2 million), increasing AUM by Rs 3,468 crore to Rs 15,471 crore (29% rise). The deal adds a Rs 3,500 crore secured asset book expected to generate ~Rs 150 crore in annual cost synergies and Rs 115 crore in operating synergies, with potential Rs 2,000 crore medium-term opportunity in school financing.
• MyShubhLifeflagship subsidiary for embedded financeStrategic or Co-development Partner · 3 May 2024UGRO Capital acquired MyShubhLife for Rs 45 crore, transforming it into a wholly-owned subsidiary. The deal expands UGRO's presence in MSME lending and merchant financing, targeting onboarding 200,000 new retailers within three years via tech-enabled embedded finance.
• GeM (Government e-Marketplace) - Sahay platformflagship embedded distribution partnerStrategic or Co-development PartnerUGRO Capital is the 1st wave lender listed with GeM Sahay and the first to go live with disbursements. MSMEs can obtain loans by tapping and accepting the UGRO Capital offer in seconds; GeM acts as a Loan Service Provider (LSP) and UGRO as the first lender on the Sahay platform.
• Dun & Bradstreetflagship research partnerStrategic or Co-development PartnerUGRO Capital and Dun & Bradstreet jointly released the 4th edition of the MSME Sampark Report, analyzing over 73,000 MSMEs across eight key sectors and surveying more than 5,000 businesses nationwide to assess global trade impacts and domestic market resilience.

Scale indicators12 records

Recent moves6 records

Expansion highlights7 records

Direct peers

• Cholamandalam Investment and Finance Company: Listed Indian NBFC focused on vehicle finance, home equity and SME loans. Comparable to UGRO as a tier-2/tier-3 SME-focused lender with secured-asset bias, branch-led distribution and an active co-lending franchise; similar NBFC regulatory perimeter and listed-equity disclosure profile.
• Shriram Finance: Large listed Indian NBFC with a significant share of small-ticket, semi-urban and rural commercial vehicle, two-wheeler and SME lending. Comparable to UGRO on serving thin-file, underserved borrowers in tier-2/tier-3 India, branch-led distribution, and high-yield credit underwriting on cash-flow based assessment.
• MAS Financial Services: Listed Ahmedabad-based NBFC specializing in MSME, micro-enterprise and two-wheeler lending through an extensive branch network in western and southern India. A pure-play MSME NBFC comparable to UGRO on segment focus, branch-led SME origination and co-lending with public-sector banks.
• Five-Star Business Finance: Listed Indian NBFC focused on secured small-ticket business loans to MSMEs and self-employed borrowers in tier-2/tier-3 markets. Closely mirrors UGRO's LAP / secured small-ticket LAP focus and its reliance on property-based collateral underwriting in emerging markets.
• IIFL Samasta Finance: Subsidiary of IIFL Finance focused on microfinance and small-business lending to underserved borrowers. Comparable to UGRO on serving thin-file MSMEs in tier-2/tier-3 India, the secured/unsecured business-loan product stack and the listed-NBFC perimeter.
• Bajaj Finance: India's largest listed NBFC, with a substantial SME/business loan franchise alongside consumer durable and mortgage lending. Directly comparable to UGRO on the secured/unsecured MSME lending core, co-lending model with banks, and large branch + digital distribution footprint — though materially larger in AUM, customer base and capital.

Broad incumbents

• Manappuram Finance: Large listed Indian NBFC traditionally anchored in gold loans but with a growing MSME and microfinance book. Comparable to UGRO on the listed-NBFC perimeter and emerging-market distribution, though gold-loan-led rather than MSME-led.
• Muthoot Finance: India's largest gold-loan NBFC, listed, with extensive tier-2/tier-3 distribution. Comparable to UGRO on the listed-NBFC perimeter, pan-India branch network, and small-ticket secured-lending to underserved borrowers, though gold-loan-led rather than MSME-led.

Emerging players

• Lendingkart: India-based digital MSME lending fintech using alternative data and AI-driven underwriting to serve small businesses with quick-ticket working capital loans. Comparable to UGRO on the cash-flow based, AI/ML-driven MSME underwriting thesis, though smaller in scale and not NBFC-licensed.
• FlexiLoans: Mumbai-based digital lending platform providing collateral-free business loans to MSMEs using alternative data and fintech partnerships. Comparable to UGRO on the embedded-finance / digital MSME thesis and the small-ticket unsecured loan product, though a non-bank fintech rather than an NBFC.

Market position

Strengths1 record

Weaknesses1 record

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/CapitalUgro
• YouTubeyoutube.com/c/UGROCapital
• Facebookfacebook.com/ugrocapital
• LinkedInlinkedin.com/company/ugro-capital-ltd
• Instagraminstagram.com/ugrocapital

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries2 records

Funding overview

Funding rounds12 records

Investors14 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about U Gro Capital