Microfinance companies in India play a pivotal role in promoting financial inclusion by providing small loans, savings, and financial services to underserved populations, particularly in rural areas. With over 65% of India’s population residing in villages, the demand for microfinance services is immense. These companies empower individuals, especially women, by enabling small-scale businesses and fostering entrepreneurship.
The Indian microfinance sector has significant growth potential, driven by rising financial literacy, government initiatives like MUDRA loans, and increasing digitization. Major players include Bharat Financial Inclusion, Ujjivan Small Finance Bank, Spandana Sphoorty, Bandhan Bank, and CreditAccess Grameen. With robust demand, supportive policies, and technological advancements, microfinance companies are poised to expand, contributing to India’s economic development and poverty alleviation efforts.
Share Price
The shares of Ugro Capital are trading at Rs. 250.21 up by 1.12% from its previous close of Rs. 247.43 as of December 11, 2024. The share also rose by 5% during the intraday trade to touch Rs. 259.79.
Recent Update:
UGRO Capital Secures Patent for Innovative Credit Scoring Model
UGRO Capital, a leading DataTech NBFC specializing in MSME lending, has achieved a significant milestone by securing a patent for its proprietary credit scoring model, GRO Score.
Officially titled “Method and System for Modelling Credit Scorecards,” this patent highlights UGRO Capital’s innovative approach to redefining credit evaluation for India’s underserved MSME sector.
GRO Score addresses the credit gap faced by MSMEs, which contribute nearly one-third of India’s GDP, by moving beyond traditional collateral-based and income-dependent credit assessments.
Leveraging Alternate Data for Inclusive Lending
The GRO Score model leverages advanced alternate data sources, including repayment histories, banking transactions, and GST records, to evaluate borrowers comprehensively, even those lacking formal income documentation. This unique approach enables UGRO Capital to unlock vital capital for a diverse borrower base.
The latest iteration, GRO Score 3.0, incorporates cutting-edge statistical algorithms to assess creditworthiness with unparalleled accuracy and precision, ensuring wider access to credit for India’s MSME sector.
Impact of GRO Score on MSME Lending
Since its implementation, GRO Score has assessed over 1.7 lakh loan applications, analyzing more than 5.6 lakh bureau records, 2.3 lakh bank statements, and 80,000 GST reports. This data-driven model has significantly contributed to bridging the credit gap and empowering MSMEs, reinforcing UGRO Capital’s leadership in the sector.
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Management Commentary
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “Our GRO Score patent reaffirms our commitment to transforming MSME lending. By providing nuanced risk assessments tailored to the unique challenges of MSME borrowers, we are creating opportunities for growth and resilience within this critical sector. This recognition inspires us to continue driving innovation in credit evaluation and serve last mile MSMEs.”
About the Company
UGRO Capital Limited is dedicated to addressing India’s MSME credit gap by leveraging advanced data analytics and a robust technology framework, UGRO offers innovative solutions like GRO Plus for intermediated sourcing, GRO Chain for supply chain financing, GRO Xstream for co-lending with fintechs and banks, and GRO X for embedded MSME financing.
The company’s proprietary AI/ML-powered GRO Score (3.0) revolutionizes MSME credit assessment, enabling instant financing similar to consumer loans. UGRO has pioneered co-lending in India, collaborating with 10+ large public sector banks and NBFCs, building an off-balance sheet asset base comprising 46% of its AUM through GRO Xstream.
Backed by leading institutional investors, UGRO raised over ₹2,500 crore since 2018 and aims to capture 1% of India’s MSME lending market within three years. Combining technology and partnerships, UGRO Capital is redefining MSME lending with scalable, efficient, and inclusive solutions.
Conclusion
UGRO Capital’s patented GRO Score represents a significant breakthrough in inclusive lending. By employing cutting-edge technology and alternative data assessment, the company is empowering MSMEs, bridging critical financial gaps, and demonstrating innovative approaches to credit evaluation in India’s dynamic economic landscape.
Written By: Dipangshu Kundu
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