UGRO Capital Fuels MSME Growth with Data-Driven Lending
The Indian economy is fueled by the entrepreneurial spirit of millions of micro, small, and medium-sized enterprises (MSMEs). Despite their significant contributions to the country’s GDP, MSMEs often face challenges in accessing formal credit, which hinders their growth and development. UGRO Capital, a leading non-banking finance company (NBFC), is working to bridge this gap by providing data-driven lending solutions to MSMEs, especially in Tier-3+ towns.
In its 2025 Impact Report, UGRO Capital revealed that 78% of its borrowers are first-generation entrepreneurs. This is a testament to the company’s commitment to supporting innovative and ambitious entrepreneurs who are driving growth and economic development in the country.
With an asset under management (AUM) of ₹11,067 crore and support to over 1,35,000 MSMEs, UGRO Capital is making a significant impact on the MSME ecosystem. The company’s data-driven approach to lending is powered by artificial intelligence (AI) and machine learning algorithms that assess the creditworthiness of borrowers based on their financial data and business performance.
UGRO Capital’s focus on financial inclusion is aligned with the government’s policy initiatives aimed at promoting formal credit to MSMEs. The company is particularly committed to supporting women-led ventures, recognizing the immense potential of women entrepreneurs in driving economic growth and development.
The 48% MSME Credit Gap
India’s MSME sector is the backbone of the country’s economy, contributing significantly to its GDP, employment, and exports. However, MSMEs face several challenges, including limited access to formal credit. According to a report by the Reserve Bank of India (RBI), the MSME credit gap in India is a staggering 48%. This means that many MSMEs are unable to access the credit they need to grow and expand their businesses.
UGRO Capital’s data-driven lending approach is designed to bridge this credit gap by providing MSMEs with the necessary funding to scale up their operations and achieve their growth potential. The company’s AI-powered credit assessment algorithm considers a range of factors, including a borrower’s financial history, business performance, and market trends, to assess their creditworthiness.
UGRO Capital’s Unique Value Proposition
UGRO Capital’s unique value proposition lies in its ability to provide MSMEs with customized lending solutions that are tailored to their specific needs. The company’s data-driven approach to lending enables it to assess the creditworthiness of borrowers based on their financial data and business performance, which reduces the risk of default and allows for more accurate credit assessments.
UGRO Capital’s lending solutions are designed to be flexible and tailored to the specific needs of MSMEs. The company offers a range of loan products, including term loans, working capital loans, and invoice financing, which are designed to help MSMEs manage their cash flow and achieve their growth objectives.
Supporting Women-Led Ventures
UGRO Capital is committed to supporting women-led ventures and is working to promote financial inclusion for women entrepreneurs. The company recognizes the immense potential of women entrepreneurs in driving economic growth and development, and is working to provide them with the necessary funding and support to achieve their goals.
According to a report by the International Finance Corporation (IFC), women-led businesses in India have the potential to create over 1.5 million jobs and contribute over ₹5 lakh crore to the country’s GDP by 2025. UGRO Capital is committed to supporting this growth potential by providing women-led ventures with access to formal credit and other forms of financing.
Conclusion
UGRO Capital’s data-driven lending approach has made a significant impact on the MSME ecosystem in India. The company’s commitment to financial inclusion, women-led ventures, and tech-driven lending has enabled it to bridge the 48% MSME credit gap and support the growth of over 1,35,000 MSMEs.
As the Indian economy continues to grow and evolve, it is essential that MSMEs have access to the funding and support they need to achieve their growth potential. UGRO Capital’s data-driven lending approach is a game-changer for MSMEs, providing them with the necessary funding and support to scale up their operations and achieve their goals.
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