U GRO Capital's AUM Crosses INR 3,650 crore, with highest ever disbursement of INR 1,350 crore in Q1 FY23
  • Off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022)
  • Pioneered ‘Lending as a Service’ model backed by robust data and technology architecture
  • Customer base at 25,000+ as of June 30, 2022

U GRO Capital, a listed, MSME lending fintech platform, continues its growth momentum with an AUM of INR 3,656 crore as of June 30, 2022 (+166% compared to June 30, 2021) and is on track to cross the mark of INR 7,000 crore AUM by March 2023.

The company has effectively demonstrated the power of co-lending, after having kicked off this stream by experimenting with top Public Sector Banks. The current off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022). The company aims to grow its loan book under co-lending partnerships by 3X to over INR 2,000 crore by March 2023.

U GRO Capital has pioneered ‘Lending as a Service (LaaS)’ model and is revolutionizing MSME lending through its data analytics prowess and robust technology architecture. As a testimony to the same, U GRO Capital’s proprietary scoring model (GRO Score) has successfully processed 21,000+ applications, 67,000+ bureau records, 45,000+ bank statements and 14,500+ GST records in the last one year.

Key performance highlights for Q1 FY23

  • Loan Portfolio: Loan and Income Growth, Portfolio quality
    • AUM of INR 3,656 crore (+166% compared to Q1’FY22 and +23% compared to Q4’FY22)
    • INR 1,359 crore of Gross Loans originated in Q1’FY23 (+311% compared to Q1’FY22 and +41% compared to Q4’FY22)
    • Total Income stood at INR 123.8 crore (+141.4% compared to Q1’FY22 and +8.4% compared to Q4’FY22)
    • Profit before tax (PBT) increased to 10.4 crore (+340.6% compared to Q1’FY22 and +29.3% as compared to Q4’FY22)
    • Profit after tax (PAT) increased to 7.3 crore (+329.4% compared to Q1’FY22 and +20.7% as compared to Q4’FY22)
    • GNPA/ NNPA as on Jun’22 stood at 1.7% /1.2% (As a % of Total AUM)
  • Liability and Liquidity Position
    • Total lender count increased to 63 as on Jun’22, added 8 new lenders during Q1’FY23
    • Total Debt stood at INR 2,208 crore as on Jun’22, and overall debt to equity ratio was 2.26x
    • Healthy capital position with CRAR of 28% (as on Jun’22)
  • Branch, Customer Network and Employee Strength
    • 25,000+ customers as on Jun’22 (+5,000 customers in Q1FY23)
    • 96 branches (as on Jun’22), addition of 5 new branches during the quarter
    • 1,275+ Employees as on Jun’22, net employee addition of 165+ during Q1’FY23

Brief financial snapshot:

Particulars

Q1’22

Q4’22

Q1’23

Growth (Y-o-Y)

Growth (Q-o-Q)

Total Income

51.3

114.2

123.8

141.3%

8.4%

Interest Expense

22.4

49.7

53.1

137%

6.9%

Net Total Income

28.9

64.5

70.7

144.6%

9.6%

Operating Expenses

21.6

47.3

51.0

136.1%

7.9%

Impairment on Financial Instruments

4.9

9.3

9.4

91.8%

1.0%

PBT

2.4

8.0

10.4

333.3%

29.3%

PAT

1.7

6.1

7.3

329.4%

20.7%

Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “U GRO Capital is at the forefront of using data analytics and technology to serve the underserved MSME segment. We have been pioneers of ‘Lending as a service’ by harnessing the power of Co-lending/ Co-origination models and steering the company towards transitioning into a lending platform through off-balance sheet AUM approach. Operational efficiencies have started to kick in with improving profitability with each passing quarter. The company is on track to achieve AUM of INR 20,000 crore by 2025, as we achieved our highest ever disbursement in Q1 FY23.”

About U GRO Capital Ltd

U GRO Capital limited is a listed (NSE, BSE), MSME lending fintech platform. U GRO Capital’s mission is ‘Solve the Unsolved’ – Small Business Credit Need with its omnichannel distribution model combining physical and digital journey of the customer. The Company envisions to spearhead India’s transition of MSME lending market to the new age of on-tap financing. It uses the emerging Data Tripod of GST, Banking and Bureau coupled with its sectoral analysis to solve the problem of credit for small businesses.

U GRO aspires to serve one million small businesses with an asset book of 1% of outstanding MSME credit of India as its first milestone.

Technology underpins every aspect of U GRO’s lending process, from API integrations, sectoral and sub-sectoral statistical scorecards, state-of-the-art AI/ML credit underwriting engine combining bank, bureau and GST statement analyzers, automated policy approvals, and machine learning OCR technology. Company’s GRO Extreme platform empowers fintech and other institutional platforms to deepen their distribution reach through a plug and play API driven seamless integration with U GRO. The company has developed full tech stack to fully automate the complete life cycle of a loan right from origination to collection during the entire customer journey.

The Company has raised ~₹ 3,000+ crore of equity & debt capital from marquee Private Equity Investors, Family Offices, Banks and other Financial Institution over last 3 years.





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