UGRO Capital Gets RBI Nod to Acquire Profectus Capital

UGRO Capital Limited, a leading DataTech NBFC focused on MSME lending, has announced that its proposed acquisition of 100% shareholding of Profectus Capital Private Limited (“Profectus”) received approval from the Reserve Bank of India (RBI) on September 17, 2025.

Pursuant to this approval and subject to customary closing conditions under the Share Purchase Agreement, the transaction is expected to close by October 31, 2025. Upon completion of transaction, Profectus Capital will become a subsidiary of UGRO Capital Limited and an application for merger will be immediately filed, through which Profectus will be merged into UGRO Capital Limited with an effective date of April 1, 2025.

This acquisition will deliver immediate scale with a 29% growth in AUM, strengthen UGRO’s secured asset mix, and diversify the portfolio through expansion in high-yield Emerging Markets and Embedded Finance. It also unlocks incremental opportunities of over ₹2,000 crore in school financing, while creating strong alignment in Secured LAP, Machinery Finance, and Supply Chain Finance. These synergies are expected to generate ₹115 crore in cost savings and add approximately ₹150 crore of incremental profitability, enhancing ROA by 0.6–0.7% post-merger.

Commenting on the development, Mr. Shachindra Nath, Founder and Managing Director, UGRO Capital, said, “The RBI’s approval is a critical milestone that validates our strategy and accelerates our mission of solving India’s small business credit gap. Profectus’ complementary portfolio, combined with UGRO’s DataTech underwriting capabilities, will enable stronger profitability, higher secured lending, and inclusive growth across the MSME ecosystem.”

The ₹1,400 crore all-cash acquisition, partially funded through UGRO’s recent equity raise, is expected to add approximately ₹150 crore of annualized profit and deliver cost synergies of ₹115 crore post-integration. Together, UGRO and Profectus will have a combined AUM of over ₹15,000 crore, serving more than 2 lakh MSMEs across India. 

UGRO Capital expects to complete the transaction in the coming months following fulfilment of all closing conditions.