UGRO Capital Gets RBI Nod for Profectus Deal to Boost AUM

By siliconindia  |  Friday, September 19, 2025

UGRO Capital Gets RBI Nod for Profectus Deal to Boost AUM
  • RBI approves UGRO Capital's 100% acquisition of Profectus Capital.
  • The deal is set to boost AUM by 29% and strengthen secured MSME lending.
  • Merger expected to close by October 31, delivering Rs 150 Cr profit and Rs 115 Cr cost synergies.

UGRO Capital Limited, a leading DataTech driven NBFC focused on MSME lending, has received the green light from the Reserve Bank of India (RBI) to acquire Profectus Capital Private Limited. The all-cash deal, worth Rs 1,400 crore, marks a major step in UGRO’s expansion and is expected to close by October 31, 2025.

With this acquisition, UGRO Capital aims to scale up its assets under management (AUM) by 29%, taking the combined total to over Rs 15,000 crore, and expand its presence in secured and high yield lending segments across India.

Following the acquisition, Profectus Capital will become a subsidiary of UGRO Capital. The companies will file for a full merger, effective April 1, 2025, subject to final approvals. The strategic move is set to bring in significant cost synergies of Rs 115 crore and add around Rs 150 crore to annual profits, increasing return on assets (ROA) by 0.6–0.7%.

The acquisition opens up new lending opportunities, including over Rs 2,000 crore in school financing, and strengthens UGRO’s position in LAP (Loan Against Property), Machinery Finance, and Supply Chain Finance.

Shachindra Nath, Founder and MD of UGRO Capital, said, “RBI’s approval is a major validation of our strategy. This acquisition strengthens our commitment to bridging India’s MSME credit gap and creating a scalable, inclusive financing platform”.

Also Read: Bank of India Launches Instant MSME Loans with Cashinvoice

This deal also highlights UGRO’s growing strength in DataTech led underwriting, allowing it to serve over 2 lakh MSMEs across the country. A portion of the deal is being funded through UGRO’s recent equity raise.

With all approvals now in place, UGRO Capital is focused on completing the remaining formalities to integrate Profectus and accelerate its vision for MSME-focused financial growth.

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