U GRO Capital & Mastercard team to offer financing solutions to SMBs

By Gloria Mathias

Mastercard has announced a collaboration with U GRO Capital, an NBFC specialising in MSME financing, to extend its financing solution to small businesses in India that require financial support to maintain and grow their operations.

This strategic collaboration between Mastercard and U GRO Capital aims to address this challenge by enabling a holistic digital supply chain financing solution for millions of small businesses in India.

U GRO Capital will leverage its proprietary underwriting and cash flow-backed assessment model to offer short-term credit to dealer distributors and last-mile retailers, among other small merchants and women entrepreneurs.

Vikas Varma, Chief Operating Officer, South Asia, Mastercard shared, “U GRO Capital and Mastercard are joining forces to deliver an accessible working capital solution, and the collaborative commitment aims to fuel the growth of small businesses across India, paving the way for sustained success in the entrepreneurial landscape.”

With its progressive approach to MSME financing, U GRO Capital leverages the data technology platform to extend credit to MSMEs. The approach emphasises cash flow-backed assessments based on data analysis, transcending traditional financial and collateral-based evaluations. U GRO Capital’s proprietary underwriting model, the GRO Score, goes beyond traditional lending by harnessing the power of ecosystems and leveraging alternate data sources to evaluate customers based on their banking, bureau, and GST behaviours, facilitating credit extension to the last mile.

Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital, said, “We are truly excited to collaborate with Mastercard, a recognised global leader in the payment industry. This strategic partnership complements our vision of reshaping the MSME finance landscape and meeting the pressing demands for instant working capital. We are confident in our ability to onboard millions of small businesses through the Mastercard network, thereby magnifying our collective impact on the MSME sector. This alliance, underpinned by innovation and a shared commitment, holds the potential to be a pivotal force in addressing the intricate credit needs of MSMEs nationwide.”

This collaboration with U GRO Capital aligns with Mastercard’s mission to drive financial inclusion for businesses across India.