UGRO Capital Empowers 135K MSMEs, Releases ESG Impact Report Aligned with UN SDGs

StartupTalky News

30 Jun 2025 — 4 min read

UGRO Capital Powers 135K+ MSMEs, Shows Strong ESG-Led Growth in New Social Impact Report

First-time entrepreneurs at the forefront: 78% of borrowers; 61% are first time borrowers.
Women-led ventures surge to 74%, Single owners who are female are 9%
INR 642 Cr disbursed to 3,369 green-sector MSMEs; 42% of borrowers invested in ESG initiatives
Aligned with 11 UN Sustainable Development Goals, embedding ESG screening to advance gender equality, clean energy, decent work and climate action
Launched under the #BharosaMSMEpar movement, inviting every Indian to pledge support for MSMEs

UGRO Capital Limited, a leading DataTech NBFC focused on MSME lending, today released the third edition of its Social Impact Report, demonstrating how targeted credit drives measurable economic, social and environmental outcomes for India’s most dynamic yet underserved businesses. Produced in partnership with Dun & Bradstreet India, the report reflects UGRO’s expanding reach, serving over 135,000 MSMEs through 200+ branches nationwide and underscores its commitment to a sustainable, inclusive MSME ecosystem.

Over the past three years, UGRO Capital has grown its customer base from just over 23,000 in March 2022 to more than 135,000 by January 2025, boosting its Assets Under Management nearly four-fold from INR 2,932 Crore to INR 11,067 Crore while deepening financial inclusion across India’s heartlands. Notably, 78% of these borrowers are first-generation entrepreneurs tapping formal credit for the first time, and women-led enterprises have surged to 74% of total portfolio. 9% of UGRO’s portfolio is one woman owners. Beyond metros, AUM in Tier 3+ geographies climbed from INR 1,144 Crore to INR 2,596 Crore, reflecting a strong focus on rural and small-town growth. In line with its ESG framework, UGRO channelled INR 642 Crore to 3,369 green-sector MSMEs spanning renewable energy, WASH, and sustainable manufacturing and 42% of borrowers invested in energy and waste-efficiency initiatives.

Talking about the report, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “This report is more than just numbers, it reflects our purpose. MSMEs are the backbone of India’s economy, yet 75% rely on informal credit. This report validates our mission to democratize access to finance through data-led innovation. It also brings to life our campaign belief - MSME Accha Hai and now invites every Indian to show their support through #BharosaMSMEpar. Our emotion became evidence; now it becomes action.”

Ms. Irem Sayeed, Chief Credit Officer, UGRO Capital, added, “Our ESG-led lending framework ensures growth that is both inclusive and resilient. From clean-energy enterprises to women-led ventures, every loan becomes a lever for change. The 42% rise in women’s employment within our borrower network shows the multiplier effect of thoughtful financing.”

The report reaffirms UGRO’s alignment with 11 UN Sustainable Development Goals, including decent work, gender equality, clean energy, innovation, and climate action. Its embedded ESG screening protocol ensures responsible disbursals without compromising growth momentum. The research—combining telephonic and in-person interviews across 200+ branches in metro and Tier 2/3 centers was enriched by platform analytics and public financial disclosures to ensure robustness and representativeness.

The launch of this Impact Report also aligns with UGRO Capital’s #BharosaMSMEpar campaign, a nationwide call for every Indian, from consumers to policymakers, to pledge support for MSMEs. Because when Indians back these businesses with their trust, they power a billion dreams.

About UGRO Capital Ltd (NSE: UGROCAP I BSE: 511742)

UGRO Capital Limited is a DataTech Lending platform, listed on NSE and BSE, pursuing its mission of “Solving the Unsolved” for the small business credit gap in India, on the back of its formidable distribution reach and its Data-tech approach.

The Company’s prowess in Data Analytics and strong Technology architecture allows for customized sourcing platforms for each sourcing channel. GRO Plus module which has uberized intermediated sourcing, GRO Chain, a supply chain financing platform with automated end-to-end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers, and GRO X application to deliver embedded financing option to MSMEs.

The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionizing the MSME credit by providing on-tap financing like consumer financing in India.

UGRO has executed Co-lending model in India which is prevalent in the West through Co-Lending relationships with total of 17 Banks and NBFCs and built a sizeable off-balance sheet asset of 42% of its AUM through its Co-lending and Co-originating partners and GRO Xstream platform. The Company is backed by marquee institutional investors (raised INR 900+ Cr of equity capital in 2018, INR ~340 Cr in 2023 and INR ~1,265 Cr in 2024) and aims to capture 1% market share over the next three years.