Ugro Capital to Raise USD 40 Mn from US DFC for MSMEs

Mumbai, Oct 16 (PTI) Non-bank lender Ugro Capital on Wednesday said it plans to borrow USD 40 million (about Rs 330 crore) from the US International Development Finance Corporation (DFC) for on lending.

The non-bank finance company (NBFC) will on-lend the funds to Indian micro, small and medium enterprises, as per an official statement.

It has entered into a partnership with DFC and received a commitment letter for the USD 40 million loan, the NBFC said, adding that USAID is also supporting the partnership by committing its resources.

The NBFC has recently closed similar borrowing transactions, including Rs 250 crore each from Dutch lender FMO and Asian Development Bank for focused onending.

From the DFC loan, 70 per cent of the money will be earmarked for women-owned or led businesses, while USD 5 million is devoted for new to credit borrowers.

"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," the company's founder and managing director Shachindra Nath said.

DFC's acting vice president of small business and financial services Justin Andrews said access to finance for new-to-credit borrowers and MSME finance is a key driver for financial inclusion and hoped the partnership will help the growth of MSMEs and promote gender equality.