U GRO Cap: Disbursal levels back, liability base solidified as company raised Rs 400 cr

Mumbai: U GRO Capital, a BSE listed, technology focused platform, today announced its financial results for Q1 FY21. With technology and innovation being the backbone, U GRO Capital strives towards bridging the SME lending gap. We observed the past few months of lockdown as a critical opportunity to reflect, contemplate and work towards enhancing the Company’s strategic fronts. This involved review of existing processes and the use of technology to digitize underwriting processes and render them contactless, to be able to address the requirement of MSMEs remotely in-line with the new normal.

Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “Stepping into 2020, businesses were already facing the brunt of economic slowdown, when the pandemic arose to exacerbate the pain. For us, the circumstances called for a degree of improvisation in the form of digitalization, so as to be able to operate effectively in these unprecedented times. Having done so, our disbursals across all U GRO locations have gained ground amid the lockdown scenario, with our July disbursal figures reaching approximately 80% of pre-COVID levels. With the economy gradually opening, Indian small businesses have started taking small steps towards regaining their operational potential and are thus looking for liquidity infusions, as reflected in our success with Sanjeevani program and ECLGS. Our loan book cover under Moratorium 2.0 is at 63%, which is a significant reduction from the 81% as during the Moratorium 1.0. Towards strengthening our funding base, we managed to raise liability of over Rs. 150 crores from diverse sources, including under government schemes such as PGC and TLTRO 2.0, and we have a strong pipeline in place to cater to our future liability needs also. I believe that the worst is now behind us in the lending sector, and the well-run firms will enjoy the opportunity to build their market share in the coming months.”