UGRO Capital Secures Rs 380Cr FMO Funding for MSMEs

By: Women Entrepreneurs Review Team | Thursday, 17 September 2026

UGRO Capital has raised ₹380 crore through the issuance of 38,000 senior, secured, rated, listed, redeemable and transferable non-convertible debentures (NCDs), fully subscribed by FMO, the Dutch entrepreneurial development bank. The transaction marks FMO’s third investment in UGRO Capital in less than three years and strengthens the company’s institutional funding base.

The five-year NCDs are intended to support financing for underserved small businesses, with a focus on women-owned and women-led enterprises, youth-owned and youth-led businesses, and rural MSMEs. The funding will also contribute to financing or refinancing eligible green projects aligned with FMO’s sustainability approach.

The latest transaction follows FMO’s earlier investments in UGRO Capital, including a ₹260 crore NCD investment in February 2025 and a ₹249.60 crore transaction in December 2023. With the latest funding, UGRO Capital’s debt raised from development finance institutions and impact-focused investors has crossed ₹1,300 crore.

Key Highlights:

• UGRO Capital has raised ₹380 crore through NCDs fully subscribed by FMO
• The funding will support credit access for women-led, youth-led and rural MSMEs
• FMO’s latest investment takes UGRO Capital’s development finance funding above ₹1,300 crore

The funding is part of UGRO Capital’s strategy to build a diversified, long-term institutional liability base. The company said its partnerships with development finance and impact-focused investors are linked to measurable social outcomes, including financial inclusion and increased access to credit for underserved businesses.

UGRO Capital is a DataTech-focused non-banking financial company that provides financing to micro, small and medium enterprises. Its lending model combines data analytics and technology with a network of Emerging Markets branches and embedded finance partnerships to provide credit to small businesses. The company operates more than 300 Emerging Markets branches across India.

As of June 2026, UGRO Capital reported consolidated assets under management of ₹15,013 crore. The company had more than 317 Emerging Markets branches and over 400,000 customers at the end of June 2026, according to its corporate disclosures.

The latest financing comes as UGRO Capital continues to expand access to formal credit for MSMEs, particularly businesses in underserved markets. By directing a portion of the FMO-backed funding toward women-led, youth-led and rural enterprises, the transaction is expected to support lending to segments that remain important to broader financial inclusion efforts.

FMO’s continued investment also extends its relationship with UGRO Capital and reflects the development bank’s focus on supporting entrepreneurship, inclusive finance and sustainable business growth. For UGRO Capital, the transaction adds another source of long-term institutional funding as it expands its MSME lending operations across India.