Shachindra Nath, Founder & Managing Director, UGRO Capital, discusses the company’s achievements and plans for business growth, digitization, personalization, customer satisfaction, financial inclusion, cyber-defense, and more:
Ravi Lalwani: The BFSI sector is rapidly shifting toward more personalized and digital-first financial services. What specific advancements or strategic changes does your organization plan to implement by 2025 to meet evolving market expectations? Are there particular markets where you aim to expand your presence or market share?
Shachindra Nath: The BFSI sector is evolving rapidly, and at UGRO Capital, we are committed to staying ahead by embedding data and technology at the heart of our operations. By 2025, our focus will be on scaling our proprietary underwriting model, GRO Score, which combines bureau, banking, and GST data, to deliver hyper-personalized credit solutions. This advanced model has already proven its ability to make credit decisions within 60 minutes, and we aim to make it even more robust with 100% digital and AI-driven underwriting.
Historically, SME lending was based on traditional income metrics, but the shift toward digital data footprints – enabled by innovations like Account Aggregator (AA), Open Credit Enablement Network (OCEN), and Open Network for Digital Commerce (ONDC) – is transforming access to credit. Our strong tech stack and data competency allow us to integrate seamlessly via APIs with a wide spectrum of partners, accelerating our ability to serve small businesses. Players who are ready and adaptive to this paradigm shift will benefit immensely, and UGRO Capital is positioned to lead this transformation.
Our Assets Under Management (AUM) have already crossed $1.2 billion, driven by our sector-specific approach and diverse product offerings. By expanding our current branch network from 210 to 400 by 2025, with a strategic focus on penetrating tier 3 & 4 markets in high-growth states, and increasing the micro-loans contribution to our portfolio through GRO Micro, we are creating deeper inroads into underserved MSME markets. These regions, supported by government initiatives and enhanced credit access frameworks, offer tremendous potential for MSME growth.
Our co-lending platform, which contributes 44% of our total AUM, continues to scale as we deepen partnerships with over 15 banks and NBFCs. This capital-light approach enables us to grow sustainably while diversifying risk. Combined with our comprehensive product suite, multi-pronged distribution strategy, and robust data-driven solutions, UGRO Capital offers unparalleled value to the MSME sector.
By leveraging these advancements, we are well on our way to becoming one of India’s largest small business lending institutions. As we move forward, our roadmap includes serving every credit need of every MSME, expanding our digital capabilities, and maintaining stable asset quality. These initiatives, combined with a focus on ESG principles and inclusion, will position UGRO Capital as a transformative force in MSME financing.
As you set financial goals for 2025, could you share specific targets, such as revenue growth, customer acquisition metrics, or cost efficiency ratios? How do you plan to leverage key market segments – like real estate, SMEs, or agriculturists – to reach these milestones?
As we approach 2025, UGRO Capital is firmly focused on scaling our impact and strengthening our position as a leading institution in MSME financing. Our key financial targets include growing our AUM to approximately $2.4 billion, achieving a Return on Assets (RoA) of 4%, and maintaining a Cost-to-Income ratio below 45%. These milestones will be driven by our commitment to customer-centric innovation, operational efficiency, and strategic partnerships.
We aim to serve over 250,000 MSMEs, expanding our customer base significantly from the ~1,00,000 borrowers we currently support. This growth will be underpinned by increasing our branch network from 210 to 400, with a specific focus on penetrating tier 3 & 4 cities in high-potential states such as Uttar Pradesh, Tamil Nadu, and Gujarat. These markets offer substantial opportunities, particularly in thriving sectors like manufacturing and trade.
Given the rapid digital transformation in BFSI, can you specify which technology initiatives you plan to prioritize by 2025? What are your key milestones, and how do you plan to measure ROI in terms of operational efficiency or customer satisfaction?
Being a data-tech lending institution, we always prioritize technology initiatives that align with our mission of empowering MSMEs and driving financial inclusion. By 2025, our focus will be on leveraging data analytics and algorithm-driven insights to enable seamless credit transmission, similar to what we see in consumer lending.
Our key milestones for 2025 include achieving full-scale adoption of our proprietary underwriting model and decision-making within 60 minutes, expanding our active customer base and leveraging real-time data analytics to improve early-warning systems and enhance customer lifecycle management.
To measure ROI, we focus on reducing turnaround time for credit approvals and lowering the cost-to-income ratio to below 45%, reflecting enhanced operational efficiency. Customer satisfaction is tracked through improved Net Promoter Scores (NPS) and retention rates, driven by seamless, personalized digital experiences. Additionally, stable asset quality and yield expansion through precise underwriting models ensure strong portfolio performance.
With customers increasingly seeking personalized, on-demand financial services, what innovative solutions or digital experiences (e.g., self-service portals, virtual assistance, or app-based financial planning tools) are in the pipeline to enhance customer experience by 2025? What metrics will you use to assess the success of these initiatives?
We are committed to transforming customer experiences with advanced digital innovations, including self-service portals, chatbot-powered assistance, and digital loan journeys. Our GRO-Xstream platform, an API-driven ecosystem, seamlessly integrates with banks, NBFCs, and fintech partners to provide swift and accurate credit solutions. Investments in virtual assistants and digitized KYC processes further streamline onboarding and enhance real-time support.
To empower customers with informed decision-making, we offer app-based tools like EMI calculators and real-time eligibility checks. Success will be measured by metrics such as reduced loan approval times, improved Net Promoter Scores (NPS), and increased retention rates, reflecting greater service satisfaction. These initiatives aim to deliver faster disbursals, enhanced transparency, and a seamless digital experience, ensuring UGRO Capital remains at the forefront of customer-centric financial services.
As cybersecurity threats escalate, how is your organization strengthening its defence mechanisms? Do you plan to invest in specific technologies (like zero-trust architecture or AI-based threat detection) or achieve industry certifications by 2025? Could you also share any KPIs related to data breach reduction or customer data protection?
As cybersecurity threats continue to escalate, UGRO Capital is proactively strengthening its defence mechanisms to safeguard customer data and maintain operational integrity. We are investing in cutting-edge technologies, including AI-based threat detection systems for real-time monitoring and zero-trust architecture to ensure robust security at every level of our digital ecosystem. These initiatives are complemented by ongoing efforts to achieve industry-recognized certifications, which validate our commitment to the highest security standards.
Our API-driven platform, GRO Xstream ensures secure integrations with banks, NBFCs, and fintech partners. It incorporates advanced encryption protocols and real-time monitoring to mitigate risks associated with third-party integrations. We aim to have fully operationalized a comprehensive security framework, reducing potential data breaches and enhancing customer confidence.
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