U GRO Capital improves cash flow from over 13,000 MSME reports

The report was recently released in the presence of SIDBI Honorary Chairman Sivasubramanian Rammann at a physical event hosted by the society

U GRO Capital, a listed fintech MSME lending platform, announced the release of its impact assessment report on Thursday. The study, which was conducted in association with Sattva consulting, a leading impact consultancy in the development sector, reinforces stakeholder confidence in U GRO’s commitment to sustainability and impact creation.

The report was recently released in the presence of SIDBI Honorary Chairman Sivasubramanian Rammann at a physical event hosted by the society.

As part of the study, Sattva Consulting independently interviewed over 450 existing clients and partners of U GRO Capital. As a result of this study, it was inferred that U GRO’s sector-wide approach directly contributes to several SDG goals such as affordable and clean energy, quality education, good health and well-being. , sustainable cities and communities and zero hunger.

The impact assessment report measured the business impact of U GRO on broad metrics of MSME business and operations, job creation and diversity, ability to obtain credit and entrepreneurial confidence.

73% of MSMEs showed healthier average bank balances, leading over 13,000 estimated customers to have an improved cash position. While 80% of MSMEs reported increasing their annual revenue by around 5-20%, which translates to over 13,000 estimated customers having increased their annual revenue.

17% of MSMEs reported geographic expansion supporting more than 3,000 estimated customers with new branches or stores. The results indicate that 70% of entrepreneurs reported having an increased appetite for risk taking.

Shachindra Nath, Vice President and Managing Director, said, “Our founding belief at U GRO Capital was to design a platform that brings unserved or underserved MSMEs into the fold of formal lending. Impact has been at the forefront of all our business conduct. Today, we stand at over Rs 3,000 Cr in assets under management (AUM) and have disbursed over Rs 5,600 Cr in loans till date.”

“At one level, our business is often seen as purely transactional, but when we dig a little deeper, we realize how the injection of capital, especially into the underserved sector, sets off a chain reaction to not only increase business potential, but also for the broader social ecosystem. As enablers of this, impact will continue to remain at the core of our mission at U GRO Capital,” he added.