UGRO Capital
UGRO Capital is an Indian non-banking financial company focused on customized credit solutions for micro, small, and medium-sized enterprises.
Last updated August 31, 2026
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Overview
UGRO Capital is an Indian financial-services company specializing in lending to micro, small, and medium-sized enterprises (MSMEs). Headquartered in Mumbai, the company operates as a listed non-banking financial company and provides customized credit products intended for businesses that may not be served adequately by standardized bank lending. Its stated approach combines sector-focused underwriting, technology-enabled credit assessment, partnerships with financial institutions, and distribution through direct and embedded channels. The company was created in 2018 through the acquisition and restructuring of the publicly listed Chokhani Securities Limited by Shachindra Nath through Poshika Advisory. Following the change in control, the business was renamed UGRO Capital and redirected toward MSME finance. This repositioning made the company less of a general securities-market entity and more of a specialist lender focused on the credit needs of smaller enterprises in India. UGRO's business model has developed through several forms of institutional collaboration. In November 2021, it entered into a co-lending arrangement with the State Bank of India under the Reserve Bank of India's co-lending framework. The arrangement was intended to combine UGRO's MSME-focused origination and underwriting capabilities with the funding and reach of a major public-sector bank. During 2022 and 2023, the company raised additional capital, including a reported ₹340.5 crore, and obtained ₹240 crore of funding from the Danish SDG Investment Fund. These transactions supported the expansion of its lending platform and strengthened its ability to serve small-business borrowers. In 2024, UGRO acquired MyShubhLife, a fintech platform that became a wholly owned subsidiary. The transaction broadened the company's distribution and technology capabilities and marked an expansion into embedded credit delivery, in which financing can be offered through digital platforms or business ecosystems rather than only through traditional lender channels. The same year also brought significant capital-market activity. UGRO issued equity shares to institutional investors through a preferential allotment, including participation by the Danish SDG Investment Fund. It also raised approximately ₹1,265 crore through compulsory convertible debentures and warrants, with participation from Samena Capital and other institutional investors. In May 2024, the board approved a proposal to raise a further ₹1,332.66 crore in equity capital. In 2025, UGRO announced an agreement to acquire Profectus Capital, subject to regulatory approvals. The Reserve Bank of India subsequently approved the transaction. In January 2026, the board approved a scheme to amalgamate Profectus Capital, by then a wholly owned subsidiary, into UGRO Capital, subject to approval from the National Company Law Tribunal and other authorities. The proposed combination represents a further effort to consolidate the company's MSME-lending operations and operating platforms. UGRO's shares trade in India under the symbol UGROCAP on the National Stock Exchange and under BSE code 511742. The company's reported assets under management and net worth as of March 2025 were ₹1,441 crore, according to the referenced Wikipedia material. Its public profile is primarily that of a specialist Indian MSME lender rather than a consumer-facing financial brand. The company received a Silver award in the Financier of the Year for Asia category at the Global SME Finance Awards 2022 in Cambodia.
History
UGRO Capital's current identity dates from 2018, when Shachindra Nath, acting through Poshika Advisory, acquired and restructured the publicly listed Chokhani Securities Limited. The transaction provided the corporate shell and listed-market foundation for a new financial-services strategy. After the change in control, the company adopted the UGRO Capital name and redirected its principal activity toward financing India's micro, small, and medium-sized enterprises. The strategic shift reflected the financing challenges faced by MSMEs. Smaller businesses often require loans tailored to their cash flows, sectors, operating cycles, and documentation profiles, while conventional credit products may be less flexible. UGRO positioned itself as a specialist lender using customized underwriting and technology-supported processes rather than relying solely on standardized lending models. Its focus has remained business finance in India, with institutional partnerships forming an important part of its funding and distribution model. A notable development came in November 2021, when UGRO entered a co-lending arrangement with the State Bank of India. The partnership operated under Reserve Bank of India guidelines and was designed to support MSME lending by combining the capabilities of the two institutions. Co-lending gave UGRO a mechanism to work with a large banking partner while retaining its specialist focus on smaller enterprises. The company expanded its capital base during the 2022–2023 period. It raised additional capital, including a reported ₹340.5 crore, and obtained ₹240 crore from the Danish SDG Investment Fund. These transactions were important to the growth of a lending business because capital and institutional funding support the origination of new loans and the scaling of assets under management. UGRO also received recognition at the Global SME Finance Awards 2022, where it won Silver in the Financier of the Year for Asia category. In 2024, UGRO broadened its technology and distribution strategy through the acquisition of MyShubhLife. The fintech platform became a wholly owned subsidiary and gave the group an entry into embedded credit delivery. Embedded finance places credit within digital platforms, merchant relationships, or other operating environments, allowing financing to be presented closer to the point at which a business needs it. The transaction therefore complemented UGRO's existing MSME-lending specialization with a more technology-oriented channel. UGRO also undertook several capital-market actions in 2024. It issued equity shares to institutional investors through a preferential allotment, with participation from the Danish SDG Investment Fund. In addition, it raised approximately ₹1,265 crore through compulsory convertible debentures and warrants, with Samena Capital and other institutional investors participating. In May, the board approved a proposal for a further equity raise of approximately ₹1,332.66 crore. These actions indicate an expansion strategy supported by repeated efforts to strengthen the company's capital resources. In 2025, UGRO agreed to acquire Profectus Capital, subject to regulatory clearance. The Reserve Bank of India later approved the transaction. In January 2026, the board approved a scheme to amalgamate Profectus Capital with UGRO Capital, subject to the National Company Law Tribunal and other required authorities. The proposed amalgamation would move the two businesses toward a more integrated corporate structure. UGRO Capital remains an Indian listed non-banking financial company. Its shares are traded on the National Stock Exchange under UGROCAP and on the Bombay Stock Exchange under code 511742. The referenced company information reports assets under management and net worth of ₹1,441 crore as of March 2025. Its development has consequently combined a listed-company transformation, specialist MSME lending, bank and institutional partnerships, fintech expansion, and acquisition-led consolidation.
- 2026
Proposed amalgamation with Profectus Capital
[1]The board approved a scheme to amalgamate Profectus Capital into UGRO Capital, subject to tribunal and other regulatory approvals.
- 2025
Profectus Capital acquisition agreement
[1]UGRO announced an agreement to acquire Profectus Capital, with the transaction later receiving Reserve Bank of India approval.
- 2024
MyShubhLife acquisition and capital expansion
[1]UGRO acquired MyShubhLife, completed institutional capital transactions, and announced a further proposed equity raise.
- 2023
Capital and development-finance funding
[1]The company raised additional capital and secured funding from the Danish SDG Investment Fund during the 2022–2023 expansion period.
- 2022
Global SME Finance Awards recognition
[1]UGRO received the Silver award for Financier of the Year for Asia at the Global SME Finance Awards in Cambodia.
- 2021
State Bank of India co-lending arrangement
[1]UGRO entered a co-lending agreement with State Bank of India to finance MSMEs under Reserve Bank of India guidelines.
- 2018
Chokhani Securities is acquired and restructured
[1]Shachindra Nath, through Poshika Advisory, acquired and restructured the listed Chokhani Securities Limited, after which the company was rebranded as UGRO Capital and refocused on MSME finance.
Products and positioning
A specialist, technology-enabled Indian MSME lender that combines sector-focused underwriting with institutional partnerships and digital distribution.
Business lending · 2018
Customized MSME loans
UGRO's core offering is customized credit for micro, small, and medium-sized enterprises in India. The company's specialist positioning is based on tailoring underwriting and repayment structures to the characteristics of different business sectors and borrower cash flows, rather than offering only generic standardized loans.
Digital financial services · 2024
Embedded credit
Following the acquisition of MyShubhLife in 2024, UGRO expanded into embedded credit delivery. This model places financing within digital platforms or business ecosystems, allowing eligible borrowers to encounter credit offers through the operational channels they already use.
Brand decisions
2026
Approve Profectus Capital amalgamation schemeM&ABackground
Following the acquisition process, UGRO considered integrating Profectus Capital into the parent listed company.
Action taken
The board approved a scheme to amalgamate Profectus Capital with UGRO Capital, subject to approval by the National Company Law Tribunal and other authorities.
Aftermath
The final legal effectiveness of the amalgamation remained dependent on the required tribunal and regulatory approvals.
2025
Agree to acquire Profectus CapitalM&ABackground
UGRO pursued further expansion and consolidation in the Indian MSME-lending sector.
Action taken
The company announced an agreement to acquire Profectus Capital, subject to regulatory approvals; the Reserve Bank of India subsequently approved the transaction.
Aftermath
Profectus Capital was described as a wholly owned subsidiary by January 2026, when the board approved a proposed amalgamation with UGRO Capital.
2024
Acquire MyShubhLifeM&ABackground
UGRO sought to extend its MSME-lending platform with a technology-enabled route to embedded credit delivery.
Action taken
The company acquired MyShubhLife, which became a wholly owned subsidiary.
Aftermath
The acquisition marked UGRO's entry into embedded credit delivery and broadened its digital distribution capabilities.
Recent events
U GRO Capital and SBM Bank India credit-card partnership[2]
Reported:
U GRO Capital announced a partnership with SBM Bank India toward the launch of the GRO Smart Business credit card, alongside EnKash.
GRO Smart Business credit card launch[2]
Reported:
U GRO Capital announced the launch of the GRO Smart Business secured credit card for eligible MSME borrowers, in collaboration with SBM Bank India and EnKash, powered by RuPay.
U GRO Capital launches GRO Micro[3]
Reported:
U GRO Capital announced the launch of GRO Micro, a dedicated distribution channel for lending services to unorganized micro businesses in non-metro markets.
U GRO Capital adds 25 branches across five states[3]
Reported:
U GRO Capital announced that it had expanded its distribution network by adding 25 branches across Karnataka, Tamil Nadu, Gujarat, Telangana and Rajasthan.
U GRO Capital and Wadhwani Foundation announce partnership for MSMEs[4]
Reported:
U GRO Capital announced a partnership with Wadhwani Foundation under the Sahayata Stability Program to help MSMEs address strategic, operational and development needs.
U GRO Capital and SBI sign loan co-origination partnership[5]
Reported:
U GRO Capital signed a loan co-origination partnership with State Bank of India to offer credit; the collaboration will use U GRO Capital’s GRO-Xstream technology platform.
Sources5 sources
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