U GRO Capital launches GRO Micro; expands network by 25 branches

By Edil Corneille

Today, Mumbai-based U GRO Capital, a BSE listed, sector-focused small business lending FinTech platform, announced the launch of ‘GRO Micro’, a dedicated distribution channel to aid lending services specifically for the unorganised micro businesses based in non-metro markets. The company announced that it has expanded its distribution network by adding 25 branches across 5 states – Karnataka, Tamil Nadu, Gujarat, Telangana, and Rajasthan.

Under ‘GRO Micro’, the aim is to offer small ticket loans – secured against property, as well as unsecured loans, to micro-businesses to help them in sustenance and stability in the post-COVID-19 pandemic era; meeting working capital needs to fix broken cash flows; and catering to business expansion requirements.

Based on its internal research, the company found that there exists an opportunity to connect with over 5 million MSMEs in target markets, away from the urban centers. These small businesses in Tier 2 and 3 regions face a lack of formal capital infusion due to insufficient database and unavailability of requisite documents. This sector alone presents a huge market opportunity prompting the company to launch a dedicated vertical called GRO Micro to cater to these businesses.

U GRO Capital aims to bridge the credit gap by providing its customised lending services. It has a technology-enabled underwriting model, for which it has filed a patent. The company plans to combine this model with its deep digital architecture, facilitated by its capabilities in AI/ ML leveraging traditional and alternate data sources, to offer credit in a quick and convenient manner.

Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “U GRO Capital is built on the philosophy of ‘solving the unsolved credit gap’ of small businesses. With the launch of ‘GRO Micro’ and expanding our physical network we have taken a significant step in our bid to reach out to the unserved and underserved small businesses. Under this initiative, we aim to reach out to over 5 lakh small businesses across 5 states – Karnataka, Tamil Nadu, Gujarat, Telangana and Rajasthan to begin with. We intend to carry our experience from these locations and expand our network by a further 75 branches by the end of FY ’22. We are confident that this initiative will support the Government’s ‘Atmanirbhar Bharat’ program.”

With GRO Micro, U GRO Capital now has an extensive network of 34 branches and presence in 8 states across India. GRO Micro caters to a wider spectrum of SME borrowers.