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India-based fintech platform U GRO Capital has announced that “It has raised almost Rs 400 crore through non-convertible debentures (NCDs), term loans and commercial papers from multiple public and private banks.
In a statement issued, U GRO Capital said, “The liability book of the company reached at Rs 387 crore as of the end of Q1 FY21, sourced from multiple public & private sector banks in various forms, including term loans, NCDs and commercial papers.”
“In the period between March – July 2020, it raised an increment of Rs 150 crore of sanctions, of which over Rs 100 crore of sanctions has not been withdrawn,” the statement said.
“In July 2020, the company issued its first set of commercial papers at the face value of Rs 10 crore for 12-month tenor,” it added.
The company said, “In the last 6 months, the borrowing rates have come down at an average rate of 10.5 percent and the company remains highly liquid with over Rs 300 crores of liquidity on the balance sheet.”
Apart from the fundraising, the Company’s AUM for the end of June 30, 2020, stood at Rs 847.4 crores, and the disbursals across all U GRO Capital locations were at 80 percent of pre-COVID levels.
Speaking on the development, Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital said, “Stepping into 2020, businesses were already facing the brunt of economic slowdown when the pandemic arose to exacerbate the pain. For us, the circumstances called for a degree of improvisation in the form of digitalization, to be able to operate effectively in these unprecedented times. Having done so, our disbursals across all U GRO locations have gained ground amid the lockdown scenario, with our July disbursal figures reaching approximately 80% of pre-COVID levels. With the economy gradually opening, Indian small businesses have started taking small steps towards regaining their operational potential and are thus looking for liquidity infusions, as reflected in our success with the Sanjeevani program and ECLGS.”
“Our loan book cover under Moratorium 2.0 is at 63%, which is a significant reduction from the 81% as during the Moratorium 1.0. Towards strengthening our funding base, we managed to raise liability over Rs. 150 crores from diverse sources, including under government schemes such as PGC and TLTRO 2.0, and we have a strong pipeline in place to cater to our future liability needs also. I believe that the worst is now behind us in the lending sector, and the well-run firms will enjoy the opportunity to build their market share in the coming months,” Shachindra added.
Further adding to the statement, U GRO Capital said, “The company’s total income stood at Rs 30.79 crore for Q1 FY21 with a PAT of Rs 3.73 crore.”