Crisil Upgrades U Gro Capital Ratings To A/Stable

Crisil Ratings upgraded U Gro Capital's, a DataTech non-banking financial company (NBFC) focused on MSME lending long-term rating on bank loans and non-convertible debentures to 'Crisil A/Stable' from 'Crisil A-/Positive', affirming the short-term rating at 'CRISIL A1'.

U Gro has raised equity capital of approximately Rs 1,240 crore since inception, with a recent infusion of Rs 340 crore in fiscal 2024 from Danish Sustainable Development Goals Investment Fund and other prominent institutions. This capital infusion, along with reported net worth of Rs 1,405 crore as of December 31, 2023, supports the company's growth objectives.

U Gro Capital's assets under management (AUM) have surged to Rs 8,364 crore as of 31 December 2023, reflecting its prowess in catering to the MSME financing segment. The company's off-book portfolio, constituting 45 per cent of AUM, signifies its strategic co-lending arrangements and partnerships.

The company's diversified product offerings, including secured loans against property, business loans, supply chain financing, and machinery loans, cater comprehensively to the MSME segment.