In a major consolidation move in India’s financial sector, UGRO Capital has announced its plan to acquire Profectus Capital for ₹1,400 crore in an all-cash transaction. The deal marks one of the largest acquisitions in the non-banking financial company (NBFC) space and is expected to significantly strengthen UGRO’s lending portfolio, particularly in the small and medium enterprise (SME) segment. UGRO Capital, a tech-focused NBFC known for its data-driven lending model, confirmed that the acquisition will enable it to expand its customer base, enhance credit distribution, and further its mission of supporting India's underserved businesses.

Profectus Capital, which was founded by former ICICI Bank veteran KV Srinivasan, has built a niche presence in SME lending, with a strong loan book and prudent underwriting standards. The acquisition comes at a time when the NBFC sector is witnessing renewed investor confidence and an uptick in credit demand post-COVID. UGRO Capital stated that the deal will be funded entirely through internal accruals and a recent equity raise, ensuring no dilution of shareholder value. The transaction is subject to regulatory approvals from the Reserve Bank of India (RBI) and is expected to be completed in the next few months.

Shachindra Nath, Executive Chairman and Managing Director of UGRO Capital, commented, “This acquisition is a strategic leap forward in our mission to be the largest small business financing platform in India. Profectus Capital brings in a complementary loan book, experienced leadership, and shared values.” Experts believe the move could accelerate UGRO’s growth trajectory, boosting its assets under management (AUM) and expanding its reach across Tier 2 and Tier 3 cities. The integration of Profectus’ systems and workforce will also add to UGRO’s operational capacity and sectoral insights.

As consolidation gains momentum in the NBFC sector, the UGRO-Profectus deal underscores the importance of scale, technology, and specialized lending expertise in building resilient, future-ready financial institutions in India’s fast-evolving credit landscape.