India’s MSMEs have long been the backbone of the country’s economy, contributing significantly to employment generation, industrial production, and overall economic growth. The importance of MSMEs cannot be overstated, as they account for a substantial portion of India’s GDP and play a crucial role in poverty reduction and inclusive development. However, for these businesses to thrive, access to credit and financial resources is paramount. This collaboration is set to bring a positive and transformative impact on micro-enterprises in India, promoting their growth and success.
Under this partnership, U GRO Capital, along with Laghu Udyog Bharati, will host a series of seminars, workshops, and events in over 100 micro markets across India. These events are aimed at educating and empowering the network of small businesses empaneled with Laghu Udyog Bharati. U GRO Capital, known for its innovative financial products and proprietary underwriting model, GRO Score 3.0, is well-equipped to support cashflow-based lending to MSMEs. This approach offers an effective means of extending credit to micro-enterprises, aiding them in their growth journey.
Laghu Udyog Bharati, since 1994, being the largest MSME association of the country, with presence in 22 states, 550 Districts and 45000 Members, has been key in bring out Financial Environment for Micro & Small Enterprises at the National Capital with Government of India. In line with G20 Financial Inclusion Mission, LUB is desirous of fulfilling the huge needs of growing economic demand for Micro and Small Enterprises. Laghu Udyog Bharati has engaged, as part of its Financial Outreach for Micro & Small Enterprises, with UGRO Capital, to extend Capital Support in 100 Locations of 22 states to Micro & Small Enterprises.
Mr. Om Prakash Gupta, All India General Secretary, Laghu Udyog Bharati, said, “Laghu Udyog Bharati has always been committed to supporting and promoting micro-enterprises in India – from enhancing gainful employment to their sustained growth. Our collaboration with U GRO Capital aligns perfectly with our mission and vision of helping MSMEs achieve their potential. We believe that providing education and awareness about government schemes and digital credit will be a game-changer for small businesses in India.”
Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital, expressed his enthusiasm for this collaboration, saying, “At U GRO Capital, our mission is to address the credit needs of over 1 million small businesses in India over the next three years. We believe that empowering MSMEs with knowledge about government schemes and digital credit solutions is essential for their growth and success. As part of our ongoing expansion efforts, we are set to establish a presence across 175 locations by the end of this fiscal. We believe that India’s MSME require education regarding the benefit of being part of formal economy and adoption of digitisation. This partnership with Laghu Udyog Bharati will be instrumental in helping us reach, educate, and empower the MSMEs, providing them inputs which enable them ready to embrace credit solutions. We view this collaboration as a significant step toward realizing our mission.”
U GRO Capital prowess of Data Analytics and strong Technology architecture allows for customized sourcing platforms for each sourcing channel. GRO Plus module which has uberized intermediated sourcing, GRO Chain, a supply chain financing platform with automated end to end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers and GRO X application to deliver embedded financing option to MSMEs.
The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionizing the MSME credit by providing on-tap financing like consumer financing in India.
UGRO has pioneered the “Lending as a Service” (LaaS) model in India and has effectively operationalized Co-lending relationship with 10+ Large Public Sector Banks and large NBFCs and built a sizeable LaaS book of more than 10% of its AUM through the GRO Xstream platform.
The Company is backed by marquee institutional investors (raised INR 900+ Cr of equity capital in 2018 and INR 340 Cr in 2023) and aims to capture 1% market share over the next three years.
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