Klub & U GRO Capital to bridge the MSME credit gap in India

By Gloria Mathias

Klub, Asia’s Revenue-based Financing platform has partnered with U GRO Capital, a DataTech NBFC focused on MSME lending, to disburse $17 million (INR 150 crores) aimed at bridging the credit gap for Micro, Small, and Medium Enterprises (MSMEs) in India.

This collaboration marks a significant step towards providing fast, founder-friendly, and flexible debt financing solutions to digital businesses nationwide.

Through this partnership, Klub and U GRO Capital will extend credit to support digital SMEs across different growth stages. The allocated fund of $17 million (INR 150 crores) will facilitate lending activities across India, offering scalable debt financing of up to INR 30 crores in a single tranche through Klub’s platform.

Klub’s investment platform combines financial product innovation, deep data-driven analytics, high-frequency collections, and community engagement, providing tailored funding solutions to SMEs and startups.

Leveraging its proprietary underwriting model and innovative product suite, U GRO Capital offers a digital platform, minimal documentation, and expedited approvals, ensuring a seamless borrowing experience for businesses.

Sudharsan Venkatkrishnan, Senior Vice President at Klub, stated, “Given the pivotal role MSMEs play in India’s economy and job market, addressing their credit requirement gap is a critical opportunity. Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach, but also aligns with the value we deliver to SMEs through our product selection and superior customer experience. We look forward to building on the mutual capabilities in the partnership to empower small Indian businesses and founders.”

Tanya Chadha, Head – Partnership & Alliances at U GRO Capital, said, “U GRO Capital is deeply committed to serving the credit needs of last-mile MSMEs, and our collaboration with Klub exemplifies this dedication. Together, we aim to provide flexible working capital solutions to SMEs, bolstering their growth. This partnership not only expands our market reach but also enhances our digital offerings, reinforcing our shared commitment to supporting and scaling businesses.”

The partnership between Klub and U GRO Capital aims to address this gap by providing accessible and flexible financing options tailored to the diverse needs of MSMEs.