UGRO Capital Acquires Profectus Capital for ₹1,400 Crore
A Game-Changing Move in India’s NBFC Sector
In a significant step towards becoming a dominant force in the MSME lending space, UGRO Capital has acquired Profectus Capital Pvt. Ltd. for ₹1,400 crore. This strategic acquisition marks a major consolidation in India’s rapidly evolving NBFC landscape.
Key Outcomes of the Acquisition:
✔️ 29% Growth in UGRO’s Assets Under Management (AUM)
✔️ Expansion into New Secured Lending Segments such as school finance, machinery loans, loan against property (LAP), and supply chain financing
✔️ ₹150 Crore Boost in Profits and ₹115 Crore in Cost Synergies
✔️ Broader Physical Presence across seven states, enhancing market reach
✔️ A crucial step towards UGRO’s ambition to lead the MSME lending market in India
Why This Matters:
✅ Profectus Capital Brings Strong Asset Quality
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Gross NPA: 1.6%
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Net NPA: 1.1%
✅ Accelerates UGRO’s MSME Lending Mission
The acquisition enhances UGRO’s ability to serve small and medium enterprises across India more efficiently, especially in underbanked regions.
✅ Leverages UGRO’s Data-Driven Credit Platform
Combining Profectus’ secured lending expertise with UGRO’s tech-enabled, data-driven underwriting approach will help UGRO scale faster and more profitably.
✅ Strengthens Co-Lending Partnerships
The expanded portfolio will enable UGRO to deepen its co-lending ties with both banks and other NBFCs, improving capital efficiency.
Why This Deal is a Big Signal for the Market:
💡 MSME Lending is Emerging as India’s Next Growth Engine
💡 Strategic Consolidations Can Deliver Real Scale and Profitability
💡 Technology-Enabled NBFCs are Driving Financial Inclusion in Tier 2 and Tier 3 cities
This isn’t just another acquisition—it’s a bold, strategic move positioning UGRO Capital to become a leading MSME lender in India.
What’s Your Take?
Is this a smart scale-up or a calculated risk?