UGRO Capital Completes Equity Capital Raise
UGRO Capital Limited, a leading DataTech NBFC specializing in MSME lending, has completed an equity capital raise and allotted Compulsory Convertible Debentures (CCD) and warrants worth INR 1,265 Crore. This follows the Board of Directors’ approval of an equity capital raise of INR 1,332.66 Crore during a board meeting on May 2, 2024, amid the peak of the Indian general elections.
Despite the uncertainty surrounding the election results and subsequent market fluctuations, UGRO Capital received shareholder approval on June 1, 2024, demonstrating strong investor confidence. All eligible investors committed fully to UGRO, resulting in the successful allotment of CCDs worth INR 258 Crores and warrants worth INR 1,007 Crores. Notably, existing private equity investor Samena Capital committed INR 500 Crores through warrants. Other significant contributions came from institutional investors like Aregence and several of India’s leading family offices. UGRO’s founder, board members, and management team also subscribed to the warrants issue.
These warrants can be exercised within 18 months from the date of allotment, with subscribers paying 25% of the issue price upfront and the remaining amount payable after 18 months. This capital raise marks the third for UGRO Capital.
Founder and Managing Director of UGRO Capital, Mr. Shachindra Nath, expressed his gratitude: “Securing this capital raise amidst market ups and downs speaks volumes about the sheer trust our investors have in us. Our aim has always been to build a DataTech-driven lending institution that is institutionally owned, independently supervised, and professionally managed, accessible to public market investors. We’re now closer to our goal of helping all small businesses in India, and I have an overwhelming sense of gratitude towards all our investors, partners, and the entire UGRO team for making it happen.”
Since its inception, UGRO Capital has raised a total equity capital commitment of INR 2,700 Crores, holds an outstanding total debt of INR 4,643 Crores from domestic and global institutions, and has partnered with 13 banks and financial institutions for co-lending totaling INR 3,295 Crores. The company has provided data-driven, customized financial solutions to over 78,000 MSMEs across India.
In 2018, Mr. Shachindra Nath initiated the concept of India’s first listed start-up by acquiring Chokhani Securities Limited, a listed NBFC with a net worth of INR 40 Crores, and raised institutional equity capital of INR 914 Crores from investors such as TPG – NewQuest, PAG, ADV Capital, Samena Capital, and other domestic family offices and public market investors. Continuing its strategic expansion, UGRO Capital raised INR 340.5 Crores last year, including INR 240 Crores from the Denmark Government-owned IFU via its Danish Sustainable Development Goals Investment Fund K/S, and INR 100.5 Crores from other institutional shareholders through a Qualified Institutions Placement (QIP).
