U Gro Capital

U Gro Capital is a publicly traded, technology-driven non-banking financial company (NBFC) focused on bridging the significant credit gap for Micro, Small, and Medium Enterprises (MSMEs) in India. The company's journey began in 2018 when financial services veteran Shachindra Nath acquired Chokhani Securities Ltd, a listed entity, and rebranded it as U Gro Capital, infusing new capital and a reimagined business model. Nath, with a career spanning the establishment of insurance, asset management, and lending institutions, drew upon his early life experiences in a small town, which gave him a firsthand perspective on the financing hurdles faced by small businesses.

Operating on a 'DataTech' lending model, the firm utilizes advanced data analytics and a proprietary underwriting engine, GRO Score 3.0, to assess creditworthiness. This model analyzes a data tripod of banking, bureau, and GST records, enabling faster and more precise risk assessment. The company’s business model is not solely reliant on its own balance sheet but also incorporates a "Lending as a Service" (LaaS) component through co-lending partnerships with over ten major public sector banks and other financial institutions. This strategy has enabled it to build a substantial off-balance sheet asset base via its GRO Xstream platform. Revenue is generated from interest on loans and fees from its lending services.

U Gro Capital strategically targets eight core sectors identified through an 18-month study: Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering, with Micro enterprises treated as a ninth monolith sector. Its product suite is tailored to MSME needs, offering secured loans (against property), unsecured business loans, machinery financing, and supply chain financing. A key product is the GRO X mobile application, which provides a credit line on the UPI platform, allowing MSMEs collateral-free, instant access to working capital. This app-based journey allows for on-the-go credit utilization through UPI and bank transfers. The company has achieved significant milestones, including supporting over 150,000 MSMEs and crossing ₹12,000 crore in Assets Under Management (AUM) by 2024.

Keywords: MSME lending, small business financing, DataTech, NBFC India, Shachindra Nath, business loans, supply chain finance, co-lending, GRO Score, GRO Xstream, fintech lending, financial inclusion, listed NBFC, secured loans, unsecured loans, working capital finance, digital lending, Indian economy, healthcare finance, education finance