UGRO Capital raises Rs 380 crore from FMO to expand MSME and merchant lending
The lender will use the NCD funding from Dutch development bank FMO to scale credit for women-, youth- and rural-led SMEs, green projects, and merchant working capital across kiranas, agri-input dealers and pharma distributors.
What happened
UGRO Capital raised Rs 380 crore in NCD funding from Dutch development bank FMO to expand lending to women-, youth- and rural-led SMEs, green projects, and
Key facts
- Rs 380 crore
- 38,000 NCDs
- Rs 250 crore in December 2023
- Rs 260 crore in February 2025
- over Rs 1,300 crore
What changed
UGRO Capital raised Rs 380 crore in NCD funding from Dutch development bank FMO to expand lending to women-, youth- and rural-led SMEs, green projects, and merchant working-capital finance for kiranas, agri-input dealers and pharma distributors.
Why this matters
UGRO Capital’s Rs 380 crore FMO funding should expand working-capital access for kiranas, agri-input dealers and pharma distributors, especially in Tier III and rural markets.
What to watch
- Quarterly disbursement growth, MSME loan-book growth and utilization of the Rs 380 crore facility.
- Share of originations from merchant lending, rural markets, women-led businesses and green-finance categories.
- GNPA, Stage 2/Stage 3 assets, collection efficiency and credit-cost trends in newer cohorts.
- New co-lending, embedded-finance or distributor partnerships involving kirana, agri-input and pharma merchant ecosystems.
- Changes in loan yields, approval turnaround times and collateral requirements among competing NBFCs, banks and fintech lenders.