Ugro Capital aims to double loan book to nearly Rs 7,000 crore in FY23

Small businesses-focused lender Ugro Capital on Monday said it aims to double its loan book to around Rs 7,000 crore by the end of this fiscal as it expands co-lending tie-ups.

At present, the NBFC (Non-Banking Finance Company) has a loan book of Rs 3,650 crore, growing from Rs 1,375 crore a year ago on the back of a record disbursal of Rs 1,359 crore in the first quarter of FY22, Shachindra Nath, chairman and managing director, told PTI.

He said along with the loans originated through its platform, the company's cumulative assets is around Rs 6,300 crore. Currently, 21 per cent of its Asset Under Management (AUM) is raised through the origination route and he expects this to touch 35 per cent by the end of this fiscal. In the June 2021 quarter this was only 2 per cent of the total AUM.

 

Going forward, the company's lending model will be led by co-origination, he said, adding the current off-book AUM stands at Rs 750 crore which is 21 per cent at the end of June.

The company plans to grow loan book under co-lending partnerships by three times to over Rs 2,000 crore by March 2023, he added.

The company has entered into co-lending pacts with State Bank of India, Bank of Baroda, IDBI Bank, Central Bank of India, Indian Overseas Bank, Punjab & Sind Bank as well as with a few private sector lenders, small finance banks and non-banking lenders.

Meanwhile, the lender last week reported an income of Rs 123.8 crore for the June quarter, up over 140 per cent, and it earned a net income of Rs 7.3 crore, which is a growth of over four-fold.

Ugro has added over 5,000 customers taking the count to more than 25,000 during the quarter. It operated 96 branches manned by over 1,275 employees.

Since beginning operations three years ago, Ugro has raised Rs 3,000 crore in equity and debt capital from marquee private equity investors, family offices, banks and other financial institutions.