In a regulatory filing, Ugro Capital said, “The company's board has approved a preferential allotment of Rs 240 crore to IFU (Investeringsfonden for Udviklingslande) through its Danish Sustainable Development Goals Investment Fund K/S. The equity fund raise is subject to customary closing conditions, including regulatory and shareholder approvals.”

The company's board has approved the issue of up to 1.52 crore equity shares on a preferential basis at Rs 157.50 each.

IFU is an independent Denmark government-owned fund offering risk capital to companies in developing countries and emerging markets is the Danish Development Finance Institution and an impact investor which invests to support sustainable development in developing countries and contribute to the realization of the sustainable development goals (SDGs) by creating better opportunities for people in low and middle-income countries.

The NBFC stated that it has entered into a definitive investment agreement with IFU. The growth capital from the funds raised will primarily be used for onward lending, this shall assist the micro, small & medium enterprises (MSME) segment and take credit to the last mile. This capital raise will further enhance the firm's strong capital position and strengthen the balance sheet, it added.

Meanwhile, Ugro Capital said that it is simultaneously raising up to Rs 101 crore from long term shareholders like insurance companies, AIF, and other financial institutions through a qualified institutions placement (QIP) of up to Rs 101 crore.

Shachindra Nath, vice chairman and managing director of Ugro Capital, said, “We have seen multiple FinTech and NBFCs which were created as private ventures and then being floated in public market at significant premium, it was our desire to create an institutionally owned, independently supervised and professionally managed FinTech in the listed world so that the opportunity is available to the large universe of public market institutional investors, HNIs, AIFs, PMS and retail investors.”

He further added, “We intent to gain 1% market share with 1 million small businesses, it has been our endeavour to change the life of small businesses and having a global development financial institution like IFU as a partner would help us achieve our mission with an accelerated pace.”

Ugro Capital was envisaged to be built as India's largest small business financing platform combining the power of Data & Tech and was uniquely created as India first listed startup. Over the last 4 years in spite of broader challenges to the lending industry has successfully built an AUM of over Rs 6,000 crore and with a monthly disbursement of more than Rs 500 crore as of March 2023.

Further, The NBFC's board, based on the recommendation of the Nomination and Remuneration Committee, has approved the re-appointment of Shachindra Nath as the vice chairman and managing director of the company for the period of three years with effect from 22 June 2023 to 21 June 2026.

Separately, the board of directors of the company has approved the opening of QIP of equity shares of face value Rs 10 each with the floor price of Rs 149.54 per share. The firm's board has authorised and declared the opening of the issue on Wednesday, 10 April 2023.

The floor price of Rs 149.54 is at a discount of 6.54% to the previous day's closing price of Rs 160 on the BSE.

Ugro Capital is a data tech lending platform. Ugro has pioneered the "Lending as a Service" (LaaS) model in India and has operationalized co-lending relationship with 10+ large public sector banks and large NBFCs and built a sizeable LaaS book of more than 15% of its AUM through the GRO Xstream platform.

The company net profit soared 287% to Rs 13.12 crore on 122.6% jump in total income to Rs 189.59 crore in Q3 FY23 over Q3 FY22.

Shares of Ugro Capital were up 0.38% to Rs 160.60 on the BSE.