SECTOR
Ugro Capital raises Rs 380 crore from FMO
Sep-16-2026

Ugro Capital has raised Rs 380 crore through the issuance of 38,000 senior, secured, rated, listed, redeemable and transferable Non-Convertible Debentures (NCDs), fully subscribed by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch entrepreneurial development bank.

This is FMO’s third investment in Ugro Capital in under three years, following NCD investments of Rs 250 crore in December 2023 and Rs 260 crore in February 2025. The five-year tenor of the new instrument matches the long-duration secured lending that Ugro extends to small businesses in Tier-3 towns and beyond, and reflects FMO’s assessment of the company’s credit discipline, governance and measured social impact.   

In line with FMO’s mandate, the proceeds will be deployed towards financing for women-owned and women-led SMEs, youth-owned and youth-led SMEs and rural SMEs, and will also contribute towards the financing or refinancing of eligible green projects aligned with FMO's sustainability approach. 

The investment continues Ugro Capital’s strategy of building a diversified, long-tenor institutional funding base that is less dependent on the domestic banking system. The company has now raised over Rs 1,300 crore of debt from development finance institutions and impact-focused investors in India and globally, including FMO, IFU (the Danish sovereign development fund), the Asian Development Bank (ADB), Triple Jump, BlueOrchard, responsAbility, Calvert Impact Capital, Enabling Qapital, GMO, WaterEquity and MicroVest, among others. Each of these relationships is anchored in measurable social outcomes, and several are repeat investors.   

UGRO Capital is a BSE listed, small business lending fintech platform. 


  RELATED NEWS >>