Ugro Capital Eyes Rs 8,000 Crore Addition To AUM By Next Fiscal

Ugro Capital Ltd. is poised to add another Rs 8,000 crore to its AUM in the next one-and-a-half years, the company’s Founder and Managing Director, Shachindra Nath, has said. 

The DataTech non-banking finance company, which is focused on lending to micro, small and medium enterprises, surpassed the milestone of Rs 10,000 crore AUM last week. 

Talking to NDTV Profit, Nath said that despite many crises like Covid-19 and the one involving Infrastructure Leasing & Financial Services Ltd., the company has maintained a healthy AUM growth rate. 

“We have grown at the rate of Rs 3,000 crore AUM every year. Our AUM was Rs 3,000 crore in FY2022, Rs 6,000 crore in FY2023, and Rs 9,000 crore in FY2024. We should add another Rs 3,000 crore by the end of this year and Rs 5,000 crore next financial year,” he said.

From 2026, Ugro Capital would grow 30% each year with the company focussing on expanding its micro-enterprises vertical, the top executive said. 

The company operates in four segments—prime channel (businesses with turnovers of Rs 2 crore to Rs 15 crore), productive asset financing, co-lending and micro enterprises. Of this, 50% of the loan book is occupied by the prime channel segment, while 10% is micro-enterprises.

“In six to eight quarters, the microenterprises will become roughly around 30% of our total loan book. It is not the volume number, but our growth will come from the expansion of our micro enterprises' loan book and will expand our ROA (return on assets) as well,” Nath said.

Ugro Capital has stated that it will expand its portfolio by 150 basis points and according to the funder, that will be happening through its micro-enterprise loans. This loan portfolio has an average yield of 20% right now.

According to Nath, when the microenterprises' loan book reaches Rs 7,000-8,000 crore, it will lead to the increase in portfolio yield due to the overall portfolio mix.

Shares of Ugro Capital Ltd. ended Monday's trade at their intraday low. The stock was down 5.61% at Rs 231.55 apiece on the NSE, against the benchmark a 0.87% dip on the NSE Nifty 50.