UGRO Capital Secures USD 40 Mn Loan from DFC to Empower MSMEs UGRO Capital intends to allocate around 70% of the funding to qualifying businesses led by women, with a commitment to directing at least USD 5 million specifically towards new-to-credit borrowers.
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UGRO Capital, a leading player in MSME lending, has signed a commitment letter with the United States International Development Finance Corporation (DFC) for a substantial USD 40 million loan.
This pivotal transaction is further supported by the United States Agency for International Development (USAID), which is dedicating resources and linking technical programs to foster inclusive and sustainable economic growth.
The investment is set to significantly enhance UGRO Capital's efforts in empowering small and medium-sized enterprises across India, particularly focusing on women-owned businesses.
"Our shared vision of financial empowerment and inclusive growth drives us forward, and with DFC's support, we will be able to further our mission of addressing every need of every MSME, especially women-owned businesses and new-to-credit borrowers," said Shachindra Nath, Founder and Managing Director of UGRO Capital.
UGRO Capital plans to allocate approximately 70% of the funding to qualifying businesses led by women, ensuring that at least USD 5 million is directed towards new-to-credit borrowers. This funding will be backed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Guarantee, highlighting the commitment to enhancing financial inclusion for underserved communities.
Previously, the company raised around USD 29.7 million each through non-convertible debentures (NCDs) from the Asian Development Bank (ADB) in January 2024 and FMO, the Dutch BIZ Experiencesial development bank, in December 2023.
