Funding · Financial Services

Ugro capital raises rs 380 crore from fmo for smes

By Startup Enthusiast · 16 September 2026

What they do

UGRO Capital lends to small businesses using data and branch verification

It raised ₹380 crore via senior secured NCDs fully subscribed by FMO

This is FMO's third investment in UGRO under three years

UGRO Capital raised ₹380 crore through a private placement of senior secured NCDs (debt bonds backed by assets).
The entire issue was fully subscribed by FMO, the Dutch entrepreneurial development bank.
The debt carries a 10.20% coupon and has a tenure of five years maturing in August 2031.
Proceeds will target women-owned, youth-led, rural SMEs, and eligible green projects.
This marks FMO's third investment in UGRO Capital within less than three years.
FMO's cumulative commitment now stands at ₹890 crore across previous rounds.
A National Company Law Tribunal order scheduled a shareholder meeting for 22 September 2026.
The vote concerns the proposed merger of Profectus Capital with UGRO Capital.

FMO has consistently increased its exposure to UGRO since December 2023.
The company raised over ₹1,300 crore in total development finance and impact capital.
UGRO Capital reported a 99% YoY surge in net profit to ₹68 crore in Q1 FY27.
Monthly disbursements crossed ₹1,000 crore in July 2026, marking a record high.
The deal aligns with UN Sustainable Development Goals verified by Dun & Bradstreet India.

UGRO Capital operates as an MSME-focused DataTech NBFC lending to small businesses.
It targets borrowers with turnover below ₹3 crore who lack audited financials.
The proprietary GRO Score assesses borrowers using banking cash flows and in-person verification.
Emerging Market lending is secured against property with average tickets around ₹18 lakh.
Approximately 80% of Emerging Market loans are issued in Tier-3 cities and beyond.
The GROx platform provides working capital averaging ₹1 lakh to micro-enterprises.
GROx serves kirana stores, agri-input dealers, pharma distributors, and nano enterprises.
The company maintains a network of 317 branches across 13 states.
76% of borrowers have a woman owner or co-owner according to recent data.

FMO (lead) — Dutch entrepreneurial development bank fully subscribing the current NCD issuance.