Mumbai-based small business lending fintech platform U GRO Capital believes co-lending is the future of non banking finance companies (NBFCs) in India. The share of co-lending in U GRO's asset under management (AUM) is currently at around 50%. The company has partnered with public sector banks aim to partner with private banks also now.
U GRO Capital specialises in providing customised loans to Micro, Small, and Medium Enterprises (MSMEs) in India.
Speaking to CNBC-TV18, Shachindra Nath, VC & MD said U GRO partners with banks and supplements their business when they face a constraint in terms of onward lending to NBFCs. "We have been stable with at least four banking partners, and we have a pipeline of another five and six, some of which we will be initiating during this quarter," he added.
While U GRO Capital has predominantly partnered with public sector banks, the company is now expanding its collaborations to include private sector banks.
Nath anticipates disbursements in the range of ₹9,000-10,000 crore for the upcoming financial year, showcasing the company's commitment to sustained growth.
He said, “We are seeing steady growth our capacity is around ₹550 crore a month and we have been rolling that capacity. We should end between that ₹9000 to 10,000 crore growth nearer to lower side of the ₹10,000 crore target which we should achieve.”
He also highlighted the impressive profitability growth from ₹7 crore PAT in FY22 to ₹40 crore in FY23, expressing confidence in surpassing the ₹120 plus crore target.
The market cap of
U GRO Capital is ₹2,534 crore and it competes with peers such as Cholamandalam Finance, Sundaram Fin and L&T Finance.
The fintech platform's stock gained nearly 82% in 2023.
(Edited by : Shweta Mungre)
