Getty ImagesSMB lending NBFC U GRO Capital announced its financial numbers on Thursday crossing Rs 1,500 crore of AUM and a monthly disbursement of Rs 250 crore in July 2021. The company, on Wednesday also got listed on the National Stock Exchange (NSE). Previously listed on Bombay Stock Exchange (BSE), the company aims to expand access to a larger set of investors and broker network with the NSE listing.
Instituted in 2017, U GRO has a tech-enabled MSME lending business model and is currently serving 9,000 MSME customers. It started disbursement under the co-lending partnership with Bank of Baroda from June 2021. The company’s cumulative disbursement crossed Rs 3,000 crore.
In a statement, Shanchindra Nath, Executive Chairman and MD, U GRO said, “In our last two and a half years of operation, one whole year was shut down due to the pandemic. It is the base effect which is coming into effect. We have utilized our multiple channels during the pandemic including supply chain financing helping over 152 OEM players and partnership and alliances with 11 underlying fintechs and NBFCs.”
The MSME sector contributes almost 35% of the GDP, employs roughly around 8% of the population and has a credit gap of more than $600 billion. “Therefore, the growth of the economy is dependent on credit dissemination. There is a renewed focus because people see this as an opportunity for both the underserved market, where existing SMEs who already have credit facilities need more, and for the market which is not otherwise served,” he added in the statement.
India still doesn't have a platform where SMEs can solve their credit problem. That's because SMEs are non homogeneous sector with every small business differing from the other. “Our mission is to build such a large scale platform and solve the problem through use of our deep sectoral focus and technology- data analytics,” he commented.
The company hopes that in the next five years the MSME financing in India would reach where consumer financing is today.
In the next five years, U GRO Capital aspires to build an Rs 20,000 crore of asset under management while taking approximately 1% market share of the MSME Credit in India by opening around 270 branches.
Instituted in 2017, U GRO has a tech-enabled MSME lending business model and is currently serving 9,000 MSME customers. It started disbursement under the co-lending partnership with Bank of Baroda from June 2021. The company’s cumulative disbursement crossed Rs 3,000 crore.
In a statement, Shanchindra Nath, Executive Chairman and MD, U GRO said, “In our last two and a half years of operation, one whole year was shut down due to the pandemic. It is the base effect which is coming into effect. We have utilized our multiple channels during the pandemic including supply chain financing helping over 152 OEM players and partnership and alliances with 11 underlying fintechs and NBFCs.”
The MSME sector contributes almost 35% of the GDP, employs roughly around 8% of the population and has a credit gap of more than $600 billion. “Therefore, the growth of the economy is dependent on credit dissemination. There is a renewed focus because people see this as an opportunity for both the underserved market, where existing SMEs who already have credit facilities need more, and for the market which is not otherwise served,” he added in the statement.
India still doesn't have a platform where SMEs can solve their credit problem. That's because SMEs are non homogeneous sector with every small business differing from the other. “Our mission is to build such a large scale platform and solve the problem through use of our deep sectoral focus and technology- data analytics,” he commented.
The company hopes that in the next five years the MSME financing in India would reach where consumer financing is today.
In the next five years, U GRO Capital aspires to build an Rs 20,000 crore of asset under management while taking approximately 1% market share of the MSME Credit in India by opening around 270 branches.