In addition to 5 new branches in the state, India-based leading small business lender U GRO Capital has announced the expansion of its network in Gujarat.
U GRO in its statement said, “Its distribution channel ‘GRO Capital’ will offer loans to unorganized micro-businesses based in Baroda, Himatnagar, Mehsana, Nadiad, Odhav and near-by locations.”
“The Company’s internal study highlights that Gujarat state offers immense opportunity for expansion, especially in the micro-lending segment. Of the overall Gujarat target segment potential, the five identified markets will address approximately 34% of the potential, with over 1 million micro borrowers in and around the identified markets,” the statement said.
A significant portion of these micro-borrowers faces a lack of formal capital infusion due to insufficient databases and the unavailability of requisite documents.
“U GRO plans to bridge this credit gap for about 10,000 of these small businesses by FY’22 in the state. In Gujarat, U GRO Capital will cater to borrowers such as Kirana stores, medical shops, hair salons, etc. among other identified target businesses,” the statement added.
Speaking on the expansion, Commenting on the expansion, Mr. Sathiayan Jaichandran, Chief Business Officer, U GRO Capital said, “By expanding our branch network and the reach of GRO Micro in Gujarat, we have taken a significant step towards the realization of our philosophy of solving the unsolved credit gap of the unserved and underserved small businesses.”
“Under this initiative, we aim to provide our customized credit offerings to over 10,000 small businesses in the state. We intend to carry our experience from the 5 identified states and expand our branch network by a further 75 branches by the end of FY ’22. We are confident that this initiative will support the Government’s Atmanirbhar Bharat’ program,” Jaichandran added.
Apart from Gujarat, U GRO Capital has expanded its branch presence in four states of Telangana, Karnataka, Rajasthan, and Tamil Nadu, with a total of 20 new branches.
This will help the MSMEs in meeting their working capital needs to fix broken cash flows and to assist them in the operational sustenance and stability in the post-pandemic era. It aims to reach out to 50,000 small businesses across the country by FY’22 while expanding its branch network to 100 locations.
