The listed company, established as a lending fintech company in July 2018, said on Tuesday that its board had approved the preferential allocation of shares worth Rs 240 crore to the public fund. Danish IFU (Investeringsfonden for Udviklingslande).
On Monday, UGRO said it would raise Rs 101 crore from long-term shareholders like AIF insurance companies and other financial institutions through QIP.
UGRO said it has entered into a definitive investment agreement with IFU, which will invest through its Danish K/S Sustainable Development Goals Investment Fund. The capital will mainly be used for subsequent loans and is intended to strengthen the company’s balance sheet.
“We aim to gain 1% market share with 1 million small businesses. We have been working to change the lives of small businesses, and having a global development finance institution like IFU as a partner would help us achieve our mission at an accelerated pace,” UGRO Chief Executive Officer Shachindra Nath said in a statement released by the company.
The equity fundraising is subject to customary closing conditions, including regulatory and shareholder approvals.
UGRO has assets under management of Rs 6,000 crore, with a monthly disbursement of over Rs 500 crore.