Fintech startup U GRO Capital raised $41.3 million from IFU and long-term shareholders. The startup’s board has approved a preferential allotment of INR 240 Cr to IFU (Investeringsfonden for Udviklingslande) via its Danish Sustainable Development Goals Investment Fund.
Furthermore, the remaining INR 101 Cr was raised through a qualified institutions placement from shareholders such as insurance companies, AIFs, and other financial institutions (QIP).
According to the startup, the equity fund raise is subject to customary closing conditions, such as regulatory and shareholder approvals.
U GRO Capital will use its funds to lend to the MSMEs segment. It will focus even more on improving its balance sheet.
U GRO Capital operates as a lendingtech platform. The company is traded on the NSE and BSE stock exchanges.
“We have seen multiple fintech and NBFCs that were created as private ventures and then floated in the Public Market at significant premium,” said Shachindra Nath, vice chairman and managing director. “It was our desire to create an institutionally owned, independently supervised, and professionally managed fintech in the listed world so that the opportunity is available to the large universe of public market Institutional Investors, HNIs, AIFs, PMS, and Retail Investors.”
In 2018, its founder purchased the listed NBFC ‘Chokhani Securities Limited’ while raising over INR 900 Cr from NewQuest, PAG, ADV Capital, Sameena Capital, and other domestic family offices and public market investors.
