UGRO Capital LimitedStatus: Approved investment
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Who is our customer
UGRO Capital Limited is one of India’s leading Non-Bank Financial Companies, listed on the NSE and BSE, that is engaged in the business of lending and financing Micro, Small & Medium Enterprises. The company uses a data-driven approach to deliver timely and tailored credit solutions, thereby empowering (M)SMEs. With a focus on Healthcare, Education, Chemicals, Food Processing/FMCG, Hospitality, Electrical Equipment and Components, Auto Components, and Light Engineering, it serves more than 59,000 borrowers through a network of 104 branches across 15 states.
What is our funding objective?
The proceeds from this facility will be used to support UGRO to grow its Green portfolio (70%) and (M)SME portfolio (30%), with on-lending towards females and/or female led (M)SMEs or youth entrepreneurs. The long-term nature of the facility will enable UGRO to offer sustained support to (M)SMEs, both directly and through strategic partnerships.
Why do we fund this investment?
The investment contributes to FMO's goals in Climate Action (SDG 13) and RI (SDG 10).
What is the Environmental and Social categorization rationale?
The project has been categorised as E&S Category B, in accordance with FMO’s Sustainability Policy. In case of NBFC investments, the E&S classification is typically medium to low because the exposure generally is limited to retail and micro-entrepreneurs. No exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. All transactions are screened in line with UGRO’s exclusion list and in adherence to local law.
- Website customer/investment
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- INR 2496.00 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)