UGRO Capital Aims to Slash Borrowing Costs Amidst Strong Growth
UGRO Capital, a non-bank lender for small businesses, is focused on reducing borrowing costs, which are 1.25% higher than peers. The company plans to improve terms through credit rating and balance sheet enhancements, driven by assets under management growth and cost-saving synergies after acquiring Profectus Capital.
- Country:
- India
Non-bank lender UGRO Capital is on a mission to reduce its borrowing costs, which are currently 1.25% higher than those of its peers, according to Sachindra Nath, the company’s founder and managing director.
UGRO Capital's impressive growth in assets under management from around Rs 3,000 crore in 2020 to nearly Rs 15,000 crore in 2025 has led to a need for heightened liability mobilisation, impacting borrowing costs.
Improved credit ratings and a stable balance sheet are key strategies UGRO plans to deploy to bridge the 1-1.25% cost differential with competitors, while ruling out any equity capital raise in the next three years, ensuring the lender remains adeptly capitalised.
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