New Delhi, Sept. 16 -- MSME-focussed lender UGRO Capital has tapped an offshore investor for debt capital, it said.
The company has raised Rs 380 crore (around $40 million) in debt from Dutch entrepreneurial development bank FMO.
As part of the agreement, UGRO Capital has issued 38,000 senior, secured, rated, listed, redeemable and transferable non-convertible debentures (NCDs) to FMO.
UGRO Capital will deploy the proceeds to finance women-owned and women-led SMEs, youth-owned and youth-led SMEs and rural SMEs. The funds will also be used to finance or refinance eligible green projects.
This is FMO's third investment in UGRO Capital in the past three years, following NCD investments of Rs 250 crore in December 2023 and Rs 260 crore in February 2025.
UGRO Capital has now raised over Rs 1,300 crore in debt from development finance institutions and impact-focussed investors in India and overseas. These include FMO, IFU (the Danish sovereign development fund), the Asian Development Bank (ADB), Triple Jump, BlueOrchard, responsAbility, Calvert Impact Capital, Enabling Qapital, GMO, WaterEquity and MicroVest, among others.
"Our objective is to be the platform of choice for global development capital seeking measurable, credit-disciplined MSME impact in India, and FMO's continued partnership brings us closer to that goal," said Shachindra Nath, founder, vice chairman and managing director of UGRO Capital.
The company caters to micro, small and medium-sized enterprises. Its portfolio is classified into emerging market loans, embedded merchant finance and intermediate prime business.
Its consolidated net profit rose to nearly Rs 68 crore in April-June from Rs 51 crore a quarter ago, it said. Assets under management (AUM) stood at Rs 15,013 crore as of June 30, 2026.
Published by HT Digital Content Services with permission from VC Circle.