UGRO Capital acquired a 100% stake in Profectus Capital Pvt. Ltd. for ₹1,398.6 crore. It was an all-cash transaction funded through a rights issue and convertible debentures.
Profectus Capital manages assets worth 3468 crore across the seven states via 28 branches. With this acquisition, UGRO plans to expand assets under management by approximately 29%. This deal will accelerate the entry of UGRO into school financing, a market with a 2,000 crore medium-term potential. Broadening its lending offerings, like machinery finance, supply chain finance, and more.
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, showed confidence in the acquisition, saying, “Integrating Profectus’ school finance expertise unlocks ₹2,000 Crores growth potential and strengthens our secured asset mix – accelerating our journey to become India’s largest MSME lender through enhanced Emerging Markets and Embedded Finance capabilities.”
Mr K V Srinivasan, Executive Director & CEO, Profectus Capital, quoted in a press release, “The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business.”
