New Delhi: UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech NBFC focused on MSME lending, today announced a significant development that underscores its commitment to growth, innovation, and delivering value to stakeholders. UGRO Capital's Board of Directors has approved the acquisition of ‘MyShubhLife' (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of INR 45 Cr through a combination of 64:36 Equity Cash transaction, thereby making it a wholly owned subsidiary.
MSL stands as a market leader in embedded finance solutions, specializing in offerings tailored for small shopkeepers and distributors. Distinguished by its unique products featuring daily and weekly installment options along with an overdraft facility, MSL demonstrates robust underwriting and distribution capabilities, positioning it uniquely to deliver customized credit solutions to last-mile retailers and distributors.
The platform has already sourced over 15 million merchants through anchor partners involving consumer tech. It has already partnered with Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay among others for merchant financing. The company was valued at INR 240 Crores when Gozo invested in Series B round. Its major investors include Gojo, Saama Capital IV Ltd., BEENEXT2 Pte. Ltd., among others.
With MSL seamlessly integrated into its ecosystem, U GRO Capital envisions onboarding 200,000 new retailers within the next three years, thereby unlocking substantial growth opportunities. The company anticipates experiencing an incremental Assets Under Management (AUM) of INR 1500 Cr and achieving a Profit After Tax (PAT) of INR 100 Cr over the same period with MSL as its subsidiary.
Reflecting on this acquisition, Shachindra Nath, Founder and Managing Director of U GRO Capital, said, “The acquisition of MyShubhLife marks a significant milestone in our journey. Scaling up Embedded Finance requires deep understanding & penetration of payments players ecosystem and a cutting-edge data & technology stack. MSL has a proven track record on both counts, and it fits well with UGRO's strategy. MSL's live embedded relationships with leading payment ecosystems and a very contemporary and functional technology architecture will add granularity & yields on our portfolio. This acquisition reinforces our commitment to direct digital lending for small retailers.”
Monish Anand, Founder & CEO, MyShubhLife, said, “The realm of lending is primarily a matter of scale, and in UGRO we have found a lender which not only has access to an extensive balance sheet but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation. We at MSL are delighted to embark on this new journey together with UGRO, and we aim to work towards achieving our mutual goal.”
