UGRO Capital has successfully raised ₹380 crore through the issuance of 38,000 senior, secured, rated, listed, redeemable and transferable Non-Convertible Debentures (NCDs). According to reports from Rediff Moneynews, the NCDs were fully subscribed by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch entrepreneurial development bank. The five-year tenor of the new instrument matches the long duration secured lending that UGRO Capital extends to small businesses in Tier-3 towns and beyond. The NCDs carry a fixed annual coupon rate of 10.20%, payable semi-annually, with a five-year tenure maturing on August 28, 2031. The debt structure features a first-ranking exclusive hypothecation charge over identified loan receivables, maintaining a minimum 1.1x security cover.
This marks FMO's third investment in UGRO Capital in under three years, following NCD investments of ₹250 crore in December 2023 and ₹260 crore in February 2025. As reported by Rediff Moneynews, the investment reflects FMO's assessment of the company's credit discipline, governance and measured social impact. The new issuance brings FMO's cumulative commitment to UGRO Capital to ₹890 crore, demonstrating the Dutch bank's continued confidence in the company's lending model. The proceeds are aligned with ESG criteria to focus on microenterprises, women-owned (30%), youth-owned (30%), and rural businesses (10%). The staggered principal repayment structure starting from August 2029 matches the asset-side maturities of its MSME loan book, mitigating asset-liability mismatch (ALM) risks.
The investment continues UGRO Capital's strategy of building a diversified, long-tenor institutional funding base that is less dependent on the domestic banking system. According to Rediff Moneynews, the company has now raised over ₹1,300 crore of debt from development finance institutions and impact-focused investors in India and globally. These relationships are anchored in measurable social outcomes, with several being repeat investors, including FMO, IFU (the Danish sovereign development fund), the Asian Development Bank (ADB), Triple Jump, BlueOrchard, responsAbility, Calvert Impact Capital, Enabling Qapital, GMO, WaterEquity and MicroVest. This structural diversification supports the company's ability to scale lending in underserved geographies where traditional banks have limited presence.
In Q1 FY27, UGRO's GROx platform disbursed ₹1,853 crore, with assets under management (AUM) rising 32% quarter-on-quarter to ₹3,003 crore. The platform serves approximately 3.4 lakh active customers and originates more than 60,000 loans every month. The Emerging Market network comprises 317 branches across 13 states, supported by more than 2,500 employees. About four-fifths of this portfolio sits in Tier-3 geographies and beyond. Together, the Emerging Market and GROx portfolios accounted for 46% of total AUM as on June 30, 2026, up from 32% in December 2025. The company's social impact metrics show 76% of borrowers have woman owners or co-owners, with 88% of borrowers reporting revenue growth, while direct livelihoods supported by the company reach approximately 2 lakh people.
The company's sector-wise AUM demonstrates strong focus on impact sectors, with Clean energy accounting for ₹374 crore, Healthcare at ₹430 crore, Water/Sanitation at ₹268 crore, and Education at ₹102 crore as of December 2025. The average loan size varies significantly across segments, with ₹18 lakh for Emerging Market loans and ₹1 lakh for GROx platform loans. This diversified portfolio approach allows UGRO Capital to serve multiple underserved market segments while maintaining focus on sectors with measurable social impact.
