Through an innovative combination of warrants and compulsorily convertible debentures, UGRO raises the necessary capital, effectively locking in the capital needed for both this year's and next year's expansion.
One of the company's current private equity investors, Samena Capital, demonstrated a strong commitment to this capital raise by contributing INR 500 crore in warrants.
Apart from prominent family offices in India, Aregence and other institutional investors have made investments in CCDs and warrants.
The founder of UGRO, the board of directors, and the management group all pledged INR 16.25 crore in warrants. On August 9, 2023, the founder of UGRO used his whole first bonus from the company to purchase UGRO shares.
U GRO Capital raised INR 340.5 crores last year as it carried on with its trajectory of strategic expansion. Of this, IFU (Investeringsfonden for Udviklingslande) received a preferential allocation of INR 240 cr through its 'Danish Sustainable Development Goals Investment Fund K/S'.
Furthermore, a Qualified Institutions Placement (QIP) was used to obtain INR 100.5 cr from long-term shareholders, which included insurance companies, AIFs, and other financial institutions.
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “The capital raise marks a significant milestone in our journey. We have always wanted to create an institutionally owned, independently supervised, and professionally managed fintech in the listed world so that the opportunity is available to the large universe of public market investors.
We believe that we are at a pivotal moment where our potential as a financial institution is serving the needs of small businesses in India. Today, India needs more financial institutions like ours to fill the credit gap of more than 90 lakh crores. Nath added.
