Chandigarh, September 25, 2024: Mahindra Finance, one of India’s leading NBFCs and part of the Mahindra Group, today announced a co-origination partnership with UGRO Capital Limited, a DataTech NBFC and India’s largest Co-lender in the MSME segment. The partnership will offer business and affordable loans secured against properties (LAP) to the Micro, Small & Medium Enterprise (MSME) sector, thereby improving their business prospects.
Mahindra Finance and UGRO Capital aim to combine their respective strengths under a co-origination structure where UGRO will leverage its data analytics, distribution network and ground presence. The MSME businesses will also be able to capitalize on Mahindra Finance’s brand equity, enabling credit access to a wide spectrum of customers across locations, thus creating a synergy that will positively impact MSMEs seeking timely financial support.
Speaking on the partnership, Raul Rebello, Managing Director & CEO, Mahindra Finance said, “The partneship with UGRO Capital will help bridge the small business credit gap, enhancing the growth of India’s MSME ecosystem. We will aim to provide comprehensive financial solutions to the sector helping their businesses grow in our mission of being a responsible financial solution partner to emerging India”.
Shachindra Nath, Founder and Managing Director, UGRO Capital said, “Our collaboration with Mahindra Finance in this strategic partnership will significantly boost access to credit for MSMEs. Together, we aim to deliver timely and efficient financing solutions, furthering our shared commitment to financial inclusion. This partnership is a strong step toward empowering MSMEs and accelerating their growth across the country. It reflects UGRO’s core belief – ‘MSME Accha Hai,’ and reinforces our mission to service every need of every MSME of India.”
The ever-growing MSME businesses will capitalize on Mahindra Finance’s experience of handling MSME customers, hyperlocal schemes, and cost-efficient capital in addition to UGRO Capital’s expertise as an MSME finance specialist. Recognizing the dynamic nature of the financial landscape, the collaboration is envisioned as a long-term commitment, with the initial agreement spanning across three years.