UGRO Capital, a DataTech NBFC and the largest Co-lender in India’s MSME segment has unveiled a strategic co-lending alliance with the Small Industries Development Bank of India (SIDBI). This collaboration operates within the Reserve Bank of India’s (RBI) co-lending framework, aimed at enhancing priority sector lending by utilizing the combined strengths of banks and NBFCs.
The co-lending agreement seeks to offer quicker and more cost-effective credit to MSMEs by merging UGRO Capital’s innovative data & technology and widespread on-ground presence with SIDBI’s strong financial resources and strategic foresight. Through this partnership, inclusive growth and socio-economic progress nationwide will be promoted, empowering MSMEs to secure essential credit for their growth.
Shri Prakash Kumar, DMD, SIDBI commented on the partnership, saying, “SIDBI is committed to fostering the growth of the MSME sector, which is the backbone of India’s economy. NBFCs play a crucial role in our growth strategy due to their ability to reach the bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of the local ecosystem are invaluable. The co-lending framework offers a significant opportunity to channel affordable and timely credit to the smallest MSMEs in partnership with NBFCs. Our collaboration with UGRO Capital aligns perfectly with our mission to extend our reach and impact through strategic partnerships. We are pleased to commence our co-lending arrangement with UGRO Capital, which will help provide affordable business loans to MSMEs.”
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We are thrilled to join hands with SIDBI in this strategic co-lending partnership. Our combined efforts will not only enhance the reach of credit to MSMEs but also ensure that it is provided swiftly and at a more affordable cost. This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”
UGRO Capital’s distinctive data-informed co-lending strategy has provided tailored financial solutions to more than 78,000 MSMEs in India. Through this collaboration, UGRO Capital aims to broaden its influence by expanding its business reach and boosting its revenue in conjunction with SIDBI. This partnership highlights the dedication of both entities to meeting priority sector lending requirements and fostering the growth of the MSME sector.
