Non-banking company Ugro Capital’s board has approved the acquisition of financial services platform MyShubhLife for an enterprise value of INR 45 crore in a cash and equity deal.

The board also approved raising equity capital of INR 1,322 crore through Compulsory Convertible Debentures (CCD) and warrants. The equity fundraise is subject to shareholder approval.

This capital raise received strong commitment from Samena Capital, one of the company's existing private equity investors, which committed INR 500 crore through warrants, Ugro said.

In a separate statement, Ugro Capital said, "The board of directors has approved the acquisition of 'MyShubhLife' (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of INR 45 crore through a combination of 64:36 equity cash transaction, thereby making it a wholly owned subsidiary."

Ugro Capital is a datatech NBFC focused on MSME lending, while MSL specialises in offerings tailored for small shopkeepers and distributors.

Distinguished by its unique products featuring daily and weekly instalment options, along with an overdraft facility, MSL demonstrates robust underwriting and distribution capabilities, positioning it uniquely to deliver customised credit solutions to last-mile retailers and distributors, the statement added.

“The acquisition of MyShubhLife marks a significant milestone in our journey… MSL’s live embedded relationships with leading payment ecosystems and a very contemporary and functional technology architecture will add granularity and yields on our portfolio,” said UGRO Capital founder and managing director Shachindra Nath.

MyShubhLife cofounder and CEO Anand said, “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”.

The platform has already sourced over 15 million merchants through anchor partners involving consumer tech. It has already partnered with Pine Labs, Fino, Airtel Payments Bank, Mobikwik, Spice Money, and EasyPay, among others, for merchant financing.

MSL was valued at INR 240 crore when Gozo invested in the Series B round. Its major investors include Gojo, Saama Capital IV Ltd, and BEENEXT2 Pte Ltd, among others.

In addition to loans, MyShubhLife offers savings products such as insurance, SIPs, e-gold, and e-filing of taxes. The company has attracted significant investment, raising USD 4 million in 2021 in a round led by Patamar Capital and securing INR 100 crore from Gojo & Company, Inc., in 2022.

Further strengthening its financial position, UGRO also announced a capital raise of INR 1,332.66 crore through Compulsory Convertible Debentures (CCD) and Warrants. Samena Capital, one of UGRO’s major private equity investors, has committed INR 500 crore through Warrants, underscoring strong investor confidence in UGRO’s strategic direction and growth prospects.

Article Source - PTI