Fintech lending platform U Gro Capital announced that it raised $5 million from external commercial borrowings (ECB) from Liechtenstein-based EMF Microfinance Fund, AgmvK.
The company said that U Gro Capital plans to deploy the funds to extend credit to underserved business sections.
The earnings from this cooperation will act as a credit connection for the nation's micro, small, and medium-sized firms (MSMEs), which will contribute to the UN Sustainable Development Goals (SDGs), the company mentioned. SDGs aim at lowering inequality and supporting inclusive growth across the globe.
Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital, said, “Impact investors are critical funding partners to enable us bridge the enormous credit gap in India’s MSME sector. We will continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model."
U Gro Capital currently has 75 branches across nine states in India. The firm intends to reach 2.5 lakh MSMEs in the coming four years.
In February this year, U Gro Capital - which counts private equity firms ADV Partners, NewQuest Asia and IndGrowth as its backers - raised around $18.5 million as its first impact-focused debt capital from a Swiss firm.
Prior to the current round, U Gro Capital had bagged about Rs 2,600 crore in equity and debt capital from private equity investors, family offices, banks and other financial institutions over the last three years.