UGRO Capital and SIDBI announce strategic co-lending partnership to empower MSMEs
UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its strategic co-lending partnership with the Small Industries Development Bank of India (SIDBI). The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending.
Mumbai, July 29, 2024: UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its strategic co-lending partnership with the Small Industries Development Bank of India (SIDBI). The partnership is established under the Reserve Bank of India’s (RBI) co-lending framework, designed to leverage the strengths of banks and NBFCs to boost priority sector lending.
The co-lending agreement aims to provide faster and more affordable credit to MSMEs, combining UGRO Capital’s innovative data & technology and extensive on-ground presence with SIDBI’s robust financial resources and strategic vision. This collaboration will facilitate inclusive growth and socio-economic development across the country by enabling MSMEs to access the credit they need to thrive.
Prakash Kumar, DMD, SIDBI commented on the partnership, saying, “SIDBI is committed to fostering the growth of the MSME sector, which is the backbone of India's economy. NBFCs play a crucial role in our growth strategy due to their ability to reach the bottom-of-the-pyramid businesses, especially in credit-deficient geographies. Their adoption of innovative and agile credit delivery models and deep understanding of the local ecosystem are invaluable. The co-lending framework offers a significant opportunity to channel affordable and timely credit to the smallest MSMEs in partnership with NBFCs. Our collaboration with UGRO Capital aligns perfectly with our mission to extend our reach and impact through strategic partnerships. We are pleased to commence our co-lending arrangement with UGRO Capital, which will help provide affordable business loans to MSMEs.”
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We are thrilled to join hands with SIDBI in this strategic co-lending partnership. Our combined efforts will not only enhance the reach of credit to MSMEs but also ensure that it is provided swiftly and at a more affordable cost. This collaboration is a testament to our commitment to driving financial inclusion and supporting the growth of MSMEs across the nation.”