The listed company, formed as a lending financial technology firm in July 2018, on Tuesday said its board has approved preferential allotment of shares worth Rs 240 crore to Denmark government-owned fund IFU (Investeringsfonden for Udviklingslande).
On Monday, UGRO had said it will raise Rs 101 crore from long-term shareholders like insurance companies AIF, and other financial institutions through QIP.
UGRO said it has entered into a definitive investment agreement with IFU, which will invest through its Danish Sustainable Development Goals Investment Fund K/S. The capital will primarily be used for onward lending and is aimed at strengthening the company’s balance sheet.
“We intend to gain 1% market share with 1 million small businesses – it has been our endeavour to change the life of small businesses, and having a global development financial institution like IFU as a partner would help us achieve our mission with an accelerated pace,” UGRO’s managing director, Shachindra Nath, was quoted as saying in a statement issued by the company.
The equity fund raise is subject to customary closing conditions, including regulatory and shareholder approvals.
UGRO has assets under management to the tune of Rs 6,000 crore, with monthly disbursement of over Rs 500 crore.
