New Delhi: Technology-enabled small business-lending platform U GRO Capital will receive an investment of about Rs 100 crores from Flipkart co-founder Sachin Bansal and Cyrus S Poonawalla’s family, stated a report. The investment will be done through two separate securitisation and bond deals.
A first securitization transaction between BSE-listed U Gro and Poonawalla Finance Pvt. Ltd has been completed. Besides, a non-convertible debenture deal has been established between Sachin Bansal’s Flipkart and U Gro. This investment offer comes at a time when there is a scarcity of capital in the sector. Therefore U GRO Capital is planning to use the investment for expansion purpose, stated a report.
U Gro Capital is likely to attract capital funds easily in the future due to its current investment from high-profile investors, stated the firm’s executive chairman Nath. “These transactions demonstrate our ability to securitise our book at an early stage of our development and establish that besides conventional term–financing, we have the ability to raise resources from alternative channels as well,” Nath was quoted by Economic Times as saying.
Meanwhile, U Gro Capital was reported to have raised capital funds last year from various investors including PAG Asia, ADV Partners, Citigroup, Wells Fargo, New Quest and Samina Capital.
About U GRO Capital:
U GRO Capital caters to the capital needs of small and medium-sized enterprises (SME) across eight high potential sectors namely auto components, chemicals, electrical equipment, light engineering, food processing and Fast-moving consumer goods (FMCG), hospitality, healthcare and education.
Established by former Religare Finance chief executive Shachindra Nath, U GRO Capital began its commercial operations on January 2019. Notably, it purchased the publicly-traded NBFC Chokhani securities in July 2018.