UGRO Capital plans to acquire 100% of Profectus Capital for ₹1,400 Crore to enhance its position in the MSME lending sector.

Information on the Target

UGRO Capital has announced its intention to acquire a 100% stake in Profectus Capital through an all-cash transaction valued at ₹1,400 Crore. This acquisition aims to enhance UGRO's position in the secured lending segment specifically targeting Micro, Small, and Medium Enterprises (MSMEs). Following the completion of this acquisition, UGRO plans to integrate Profectus and significantly bolster its assets under management (AUM).

Profectus Capital is a key player in the Indian financial sector, operating across seven states with a network of 28 branches. Their business model is strategically focused on providing secured lending products, including supply chain finance, school financing, and loans against property. This diverse portfolio positions Profectus as a strong addition to UGRO Capital's operations.

Industry Overview in India's MSME Sector

The MSME sector in India plays a vital role in the country's economy, contributing significantly to employment and GDP. The government has introduced various measures to support this sector, maki