UGRO Capital Limited, a DataTech NBFC focused on MSME lending, announced that its Board of Directors has approved an equity capital raise of INR 1,332.66 crore through compulsory convertible debts (CCD) and warrants. The equity fund raise is subject to shareholder approval.
UGRO raised this capital through an innovative combination of compulsorily convertible debts with warrants, ensuring that the capital required for both the current year's growth and next year's growth is effectively locked in today.
Samena Capital, one of the company’s existing private equity investors, committed Rs 500 crore through warrants. In addition to institutional investors like Aregence, some of India’s marquee family offices have committed to CCD and warrants.
UGRO’s founder, board members, and management team committed Rs 16.25 crore in warrants. UGRO’s founder, on August 9, 2023, invested his entire first bonus received from the company in buying UGRO’s shares.
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “Today, India needs more financial institutions like ours to fulfill the credit gap of more than 90 lakh crore, and I am thankful to all the investors, lenders, co-lending partners, and more importantly, all UGROites to make this dream come true.”
This is the third capital raise by UGRO Capital. In 2018, Nath acquired control of a small listed NBFC, ‘Chokhani Securities Limited', and simultaneously raised institutional equity capital of Rs 914 crore from the likes of TPG, NewQuest, PAG, ADV Capital, Samena Capital, and other domestic family offices and public market investors. In 2018, this was one of the largest capital raises for a listed company at the start-up stage.
Last year, U GRO Capital raised Rs 340.5 crore. Of this, Rs 240 crore was garnered through preferential allotment to IFU via its Danish Sustainable Development Goals Investment Fund K/S. Additionally, Rs 100.5 crore was secured from long-term shareholders, including insurance companies, AIFs, and other financial institutions, through a Qualified Institutions Placement (QIP).
