Ugro Capital is a non-banking finance company or a business lending platform. The company has  recently approved a financial decision to increase its capital structure and expand its technical  capabilities. Ugro Capital has approved the issuance of Non-Convertible Debentures worth up to Rs  135 crore. The company has approved the issuance of up to 2,500 NCDs each with a value of Rs 1 lakh. 

Ugro Capital also approved the acquisition of a Bengaluru-based finance platform, MyShubhLife for a value of Rs 45 crore. The deal, which combines cash and equity will see MyShubhLife as a wholly owned subsidiary under Ugro. The company aims to enhance its technology and deliver  innovative credit solutions to distributors across the country. The Founder and CEO of MyShubhLife,  Monish Anand mentioned the objective of MSL is to use the technology as a catalyst for offering  innovative credit solutions across India. MSL will surrender its permit, as the RBI’s licensing rule doesn’t allow two NBFC licenses within the same entity. 

During regulatory filing with BSE, Ugro Capital announced the approval for an equity capital raise of Rs  1,332 crore through compulsory convertible debentures. One of the existing investors of Ugro, Samena  Capital committed Rs 500 crore through warrants. The company has also acquired MyShubhLife for a value of Rs 45 crore.

Ugro Capital had a deal to break the amount into two parts by giving Rs 28 crore  to acquire 76% of MyShubhLife, and the remaining Rs 17 crore will be paid later to secure full  ownership. Now that MSL is a subsidiary under Ugro Capital, the company is focusing on increasing new retailers within the next two to three years. With 200,000 new retailers and projecting an increase  in AUM of Rs 15,000 crore. The company is predicted to get a profit after tax of Rs 100 crore.  

The founder and managing director of Ugro Capital, Sachindra Nath shows confidence in this step by  saying that Ugro will become the Largets MSME financing company in India by 2026. As the  company is now entering embedded financing through MSL, its potential to do disbursement is now  almost 10,000 crores.  

Conclusion: 

Ugro Capital is a non-banking finance company that has recently approved a financial decision to  increase its capital structure and expand its technical capabilities. Ugro has approved the  issuance of NCDs up to Rs 135 crore. The company has also acquired MyShubhLife for a value of Rs 45  crore. Ugro had a deal to break the amount into two parts by giving Rs 28 crore to acquire 76%  of MyShubhLife, and the remaining Rs 17 crore will be paid later to secure full ownership.

The Founder  and CEO of MyShubhLife, Monish Anand mentioned the objective of MSL is to use the technology as  a catalyst for offering innovative credit solutions across India. MSL will surrender its permit, as the RBI’s  licensing rule doesn’t allow two NBFC licenses within the same entity. As the company is now entering  embedded financing through MSL, its potential to do disbursement is now almost 10,000 crores.