India-based fintech startup UGRO Capital Limited has announced its second equity capital raise, as subject to customary closing conditions. The announcement represents one of the steps that UGRO Capital has taken to enter into a definitive investment agreement with IFU, an independent Denmark-based government-owned fund offering risk capital to companies, businesses, and enterprises during the process of developing countries and emerging markets in the Danish Development Finance Institution.

Additionally, IFU also focuses on contributing to the realisation and development of the SDGs by designing improved opportunities for individuals that live in low and middle-income countries. The growth capital that comes from the funding round will be used for onward leading, which is set to assist the MSME segment and take the credit to the last mile. Furthermore, the investment money aims to enhance UGRO Capital’s position in the industry while strengthening its balance sheet.

The total amount was raised to INR 340 crore after the company simultaneously raised INR 101 crore from long-term shareholders (such as insurance firms and other financial institutions via a Qualified Institutions Placement). The equity fund raise was subject to certain customary closing conditions, such as regulatory approvals and shareholders’ approvals. Following the investment, the company aims to gain a 1% market share with 1 million small businesses, while focusing on developing its global presence as a financial institution.

UGRO Capital Limited’s solutions UGRO Capital Raise Background was designed as a small business financing platform, combining the power of data with technology software. It provides its customers with multiple tools, such as LaaS (Lending-as-a-Service) products or its Data-driven GRO Score, a leading platform for accessing credit for small businesses in India. Recently, the company launched GRO X, a platform that is focused on offering fully digital credit services through UPI products.

Companies and customers have the possibility to get short-term finance with an on-tap, multi-channel offering, alongside the flexibility to make and receive payments via UPI and bank transfer. The solution is accessible on any mobile device, and it provides clients with collateral-free credit as well. Moreover, UGRO provides multiple loan tools as well.

These include business loans, secured and unsecured (they offer users the benefit of free loans for fulfilling their business expansion and operational requirements, with the need for minimal documentation for loans up to INR 25 lacs), plant and machinery loans, GRO X, or Supply Chain Finance. The Supply Chain Finance suite of services provides additional revolving limits meant to help customers with their working capital requirements. The process involves quick approvals and digital documentation, automated limit updating and settlement, and invoice management accessed via an app.

.