Chennai, October 04, 2022 U GRO Capital has raised funds of USD 5 million through an ECB (external commercial borrowings) transaction with the EMF Microfinance Fund AgmvK (EMF). U GRO Capital, a listed entity that operates a Fintech lending platform for MSMEs (Micro, Small and Medium Enterprises), will be leveraging the funds to extend credit to India’s underserved business sections.
EMF was founded in 2008 as an instrument to catalyse access to capital where it is needed most and to promote financial inclusion to people in developing economies. Enabling Qapital (EQ), a Swiss impact-focused investment advisory and the exclusive advisor to EMF, acted as the chief facilitator for the funding round. The transaction took four months for closure with synergistic collaboration by all parties.
Expressing happiness at the conclusion of the exercise, Shachindra Nath, Vice Chairman and Managing Director, U GRO Capital said, “We share a common vision of financial inclusion with impact funding organisations such as EQ. The partnership furthers our purpose to serve India’s underserved business segments. Impact investors are critical funding partners to enable us bridge the enormous credit gap in India’s MSME sector. We will continue to leverage our technology and credit expertise to service MSMEs across the spectrum through our multi-channel distribution model.”
Chuck Olson, Managing Partner, Enabling Qapitalfurtherelaborated, “MSME Finance is a key driver for financial inclusion, and we are excited to partner with U GRO Capital in our endeavour to move money to meaning. We are confident that U GRO will enable us to positively impact the lives of MSME borrowers. The association will help strengthen our commitment towards greater financial inclusion in India.”
Contributing to the UN Sustainable Development Goals (SDGs) that outline reducing inequality and promoting inclusive growth as key goals, the proceeds from this partnership serve as a crucial credit link for India’s MSME segment. This fuels economic elevation through boosting business, accelerating job creation and promoting equality in distribution of opportunities.