UGRO Capital Limited, a leading DataTech NBFC focused on MSME lending, has announced a significant development in its growth strategy by acquiring ‘MyShubhLife‘ (MSL), a prominent Embedded Finance Fintech platform, for an enterprise value of INR 45 Cr. This acquisition, through a combination of 64:36 Equity Cash transaction, makes MSL a wholly-owned subsidiary of UGRO Capital.
MSL is a market leader in embedded finance solutions, offering tailored products for small shopkeepers and distributors. Its unique offerings include daily and weekly installment options along with an overdraft facility, demonstrating robust underwriting and distribution capabilities. With a focus on last-mile retailers and distributors, MSL is positioned to deliver customized credit solutions to small merchants.
The platform has already onboarded over 15 million merchants through anchor partners in the consumer tech sector. It has established partnerships with Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay, among others, for merchant financing. MSL was valued at INR 240 Crores during a Series B round of funding, with major investors including Gojo, Saama Capital IV Ltd., and BEENEXT2 Pte. Ltd.
With MSL integrated into its ecosystem, UGRO Capital aims to onboard 200,000 new retailers within the next three years, unlocking substantial growth opportunities. The company expects to achieve an incremental Assets Under Management (AUM) of INR 1500 Cr and a Profit After Tax (PAT) of INR 100 Cr over the same period with MSL as its subsidiary.
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, expressed his views on the acquisition, stating, “The acquisition of MyShubhLife marks a significant milestone in our journey. Scaling up Embedded Finance requires a deep understanding and penetration of the payments player ecosystem and a cutting-edge data and technology stack. MSL has a proven track record on both counts, and it fits well with UGRO’s strategy. This acquisition reinforces our commitment to direct digital lending for small retailers.”
Mr. Monish Anand, Founder & CEO of MyShubhLife, also shared his thoughts, saying, “The realm of lending is primarily a matter of scale, and in UGRO, we have found a lender which not only has access to an extensive balance sheet but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation. We at MSL are delighted to embark on this new journey together with UGRO, and we aim to work towards achieving our mutual goal.”
With this strategic acquisition, UGRO Capital reaffirms its commitment to driving inclusive economic growth and empowering MSMEs across India through innovative financial solutions.
