Listed non-banking lender U Gro Capital Ltd, which counts private equity firms Samena Capital, ADV Partners and TPG NewQuest among its investors, has raised Rs 1,322 crore (around $158.3 million) of fresh capital from existing and new institutional investors and family offices.
U Gro Capital raised the funds through a mix of compulsorily convertible debentures and warrants. Samena Capital led the fundraising exercise with a capital infusion of Rs 500 crore via warrants.
Hedge fund manager Aregence and some domestic family offices committed capital through CCDs and warrants. In addition, the company’s board members and management team together committed Rs 16.25 crores in warrants.
“The capital raise marks a significant milestone in our journey. We have always wanted to create an institutionally-owned, independently-supervised and professionally-managed fintech in the listed world so that the opportunity is available to the large universe of public market investors,” said Shachindra Nath, founder and managing director of U Gro Capital.
This is the third capital raised by U Gro Capital. In 2018, the company acquired control of a small listed NBFC Chokhani Securities Ltd and simultaneously raised equity capital of Rs 914
crores from the likes of TPG - NewQuest, PAG, ADV Capital, Samena Capital and other domestic family offices and public market investors.
Last year, U Gro Capital raised Rs 340.5 crore. Of this, Rs 240 crores came through preferential allotment to IFU (Investeringsfonden for Udviklingslande) via its Danish Sustainable Development Goals Investment Fund K/S. It raised an additional Rs 100.5 crore from long-term shareholders, including insurance companies, AIFs, and other financial institutions, through a Qualified Institutions Placement (QIP).
The lender operates on an omnichannel distribution model, with both physical and digital presence. The company says that it uses data analytics to minimise risk while providing credit in India. It aims to capture a 1% market share over the next three years.
This equity capital raise was advised by InCred Capital, the investment banking arm of Incred Group.