UGRO Capital Limited, a data-driven lending platform focused on SMEs, has successfully raised 380 crore rupees. The funds were secured through the issuance of 38,000 senior, secured, rated, listed, redeemable, and unsecured bonds (NCDs). These bonds are fully subscribed by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), a Dutch enterprise development bank.
According to a press release, this marks the third investment by FMO in UGRO Capital in less than three years. Previously, FMO invested 250 crore rupees in December 2023 and 260 crore rupees in February 2025.
In line with FMO's mandate, the received funds will be directed towards supporting lending to women-owned and led SMEs, as well as youth and rural SMEs. Furthermore, they will facilitate the financing or refinancing of relevant green projects that align with FMO's sustainable development approach.
This investment strengthens UGRO Capital's strategy to diversify its base of institutional long-term financing and reduce dependence on the domestic banking system. The company has already attracted over 1,300 crore rupees in debt from development finance institutions and impact-focused investors both in India and globally. Partners include FMO, IFU (Danish sovereign development fund), Asian Development Bank (ADB), Triple Jump, BlueOrchard, responsAbility, Calvert Impact Capital, Enabling Qapital, GMO, WaterEquity, and MicroVest.
These partnerships focus on measurable social outcomes, with several investors returning for subsequent rounds. UGRO's social impact is independently assessed. Its Social Report for 2024–25, audited by Dun & Bradstreet India, maps the company's portfolio against eight UN Sustainable Development Goals, including Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Good Health and Well-being (SDG 3), Clean Water and Sanitation (SDG 6), and Quality Education (SDG 4).
UGRO Capital serves small businesses that have historically faced limited access to formal credit. This includes enterprises with an annual turnover below 3 crore rupees that lack the tax and audited reporting required by traditional lenders. Using its proprietary GRO Score underwriting model, the company assesses borrowers based on verified bank cash flows conducted by branch staff and provides loans collateralized by residential or commercial property with an average amount of about 18 lakh rupees. Approximately four-fifths of this emerging market portfolio is located in Tier III geographical zones and beyond.
The integrated GROx trader financing platform provides working capital of approximately 1 lakh rupees on average to kirana stores, agricultural resource dealers, pharmaceutical distributors, and other micro-enterprises.
