Latest news with #Profectus
United News of India
5 days ago
- Business
- United News of India
UGRO Capital to acquire Profectus capital in Rs 1,409 crore cash deal
Hyderabad, June 18 (UNI) UGRO Capital Limited, a leading DataTech NBFC focused on MSME lending, on Wednesday announced it has executed a Share Purchase Agreement with the existing shareholders of Profectus Capital Private Limited ("Profectus") to acquire 100% of the shares of Profectus. This all-cash deal, with the consideration payable in a single tranche at closing, shall mobilise proceeds from UGRO's recently announced equity raise and will deploy capital into a fully secured asset portfolio delivering instant scale benefits with zero origination costs, making Profectus a wholly owned subsidiary, the company said in a release. We estimate that this acquisition would add around Rs 150 crores of annualised profit to UGRO making it a capital adequacy accretive transaction. The acquisition strategically enhances four core NBFC pillars: Immediate 29% AUM growth diversifies the combined portfolio to accelerate high-yield Emerging Markets and Embedded Finance expansion, while adding School Financing with incremental Rs 2,000 crore medium-term potential, as per our assessment. We estimate significant geographic and product alignment in Secured LAP, Machinery Finance, and Supply Chain Finance, which we believe will drive operational efficiencies, generating Rs 115 crore in cost savings and adding incremental profitability of ₹150 crore, thus boosting ROA by 0.6-0.7% once a post-acquisition merger is complete. The combined entity's strengthened asset mix features higher secured assets, thereby providing further impetus to scale emerging market and embedded finance businesses. Profectus has demonstrated stable portfolio expansion, building its assets under management to Rs 3,468 crore as of March 2025, with a presence across seven states through a 28-branch network and an over 800-member team, all while maintaining a gross NPA of 1.6% and a net NPA of 1.1%. Its complementary businesses in secured lending perfectly align with UGRO's data-driven underwriting platform. To facilitate the discharge of purchase consideration for the proposed acquisition, the company is proposing to add financing of Profectus' acquisition as an object of the existing preferential issuance of compulsorily convertible debentures by seeking fresh approval from the board and shareholders. The acquisition is expected to close on fulfilment of customary conditions, including receipt of RBI/shareholder approvals. Both entities will maintain current operations and strategy during integration. Reflecting on this acquisition, Shachindra Nath, Founder and Managing Director of UGRO Capital, said, 'This strategically priced acquisition deploys our equity raise to achieve instant scale and Rs 115 crore cost savings and annualised incremental profitability of Rs 150 crores, thus boosting ROA by 0.6–0.7%. Integrating Profectus' school finance expertise unlocks Rs 2,000 crores in growth potential and strengthens our secured asset mix – accelerating our journey to become India's largest MSME lender through enhanced Emerging Markets and Embedded Finance capabilities.' Mr. K.V. Srinivasan, Executive Director & CEO, Profectus Capital, added, 'The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business. We at Profectus, thank our investors for their unwavering commitment and support throughout our journey, which has helped us to establish a very strong process-orientated business with excellent portfolio quality.' With this strategic acquisition, UGRO Capital reaffirms its commitment to driving inclusive economic growth and empowering MSMEs across India, leveraging combined synergies to expand high-yield offerings while maintaining portfolio quality. UNI KNR ARN
Entrepreneur
5 days ago
- Business
- Entrepreneur
UGRO Capital to Acquire Profectus Capital for INR 1,400 Cr in Strategic All-Cash Deal
The acquisition will be funded through UGRO's recently completed equity raise and is expected to be completed in a single tranche upon regulatory approvals, including those from the Reserve Bank of India and shareholders. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Non-banking financial company (NBFC) UGRO Capital has announced that it will acquire Profectus Capital Private Limited in an all-cash deal worth INR 1,400 crore. The transaction, structured as a 100% equity buyout, will make Profectus a wholly owned subsidiary of UGRO Capital, furthering its mission to bridge the credit gap for MSMEs in India. The acquisition will be funded through UGRO's recently completed equity raise and is expected to be completed in a single tranche upon regulatory approvals, including those from the Reserve Bank of India and shareholders. "This strategically priced acquisition deploys our equity raise to achieve instant scale, INR 115 crore in cost savings, and INR 150 crore in annualized incremental profitability, boosting ROA by 0.6–0.7%," said Shachindra Nath, Founder and Managing Director of UGRO Capital. "Integrating Profectus' school finance expertise unlocks INR 2,000 crore growth potential and strengthens our secured asset mix – accelerating our journey to become India's largest MSME lender." Profectus Capital currently manages assets worth INR 3,468 crore, has a 28-branch network across seven states, and employs more than 800 people. With gross and net NPAs at 1.6% and 1.1% respectively, the company claims to have built a stable, secured lending portfolio aligned with UGRO's data-driven underwriting platform. The acquisition will immediately boost UGRO's Assets Under Management (AUM) by 29% and enhance its offerings across School Financing, Machinery Finance, Supply Chain Finance, and Secured LAP segments. UGRO expects operational efficiencies and expanded geographic reach, estimating total synergy benefits to significantly enhance capital adequacy and return on assets. "This merger brings together two like-minded platforms focused on quality and innovation," said K V Srinivasan, CEO of Profectus Capital. "We thank our investors for their continued support and look forward to scaling new heights with UGRO." Both companies will maintain their current operations during the integration period. UGRO has sought board and shareholder approval to include Profectus' acquisition in its existing issuance of compulsorily convertible debentures. Advisors to the transaction include InCred Capital (financial), SNG & Partners (legal), PwC Services LLP (financial due diligence), and Legacy Growth Partners (tax due diligence). Listed on NSE and BSE, UGRO Capital leverages its DataTech lending platform and partnerships with 17 banks and NBFCs to drive innovative financing solutions for India's underserved MSME sector.
Time of India
5 days ago
- Business
- Time of India
Lender UGRO to buy Profectus in ₹1.4k cr deal
Lender UGRO to buy Profectus in ₹1.4k cr deal MUMBAI: UGRO Capital, a tech-driven non-bank lender focused on MSMEs, will acquire Profectus Capital in a Rs 1,400 crore all-cash transaction. The acquisition, funded through UGRO's recent equity raise, is subject to regulatory approvals and will result in Profectus becoming a wholly owned subsidiary. UGRO Capital was founded in 2017 by Shachindra Nath, a financial services professional with over 26 years of experience. The company uses data analytics and technology to serve small businesses and operates through more than 240 branches. It has built co-lending partnerships with 17 banks and NBFCs, positioning itself as a key player in MSME financing. Profectus Capital, also established in 2017 by K V Srinivasan, specialises in secured lending to small businesses, particularly in the education sector. TNN Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Indian Express
5 days ago
- Business
- Indian Express
UGRO Capital acquires Profectus for Rs 1,400 crore
UGRO Capital has executed a share purchase agreement with the existing shareholders of Profectus Capital Pvt Ltd to acquire 100 per cent stake in the firm in a Rs 1,400 crore deal. This all-cash deal, with the consideration payable in a single tranche at closing, will mobilize proceeds from UGRO's recently announced equity raise and deploy capital into a fully secured asset portfolio delivering instant scale benefits with zero origination costs, making Profectus a wholly-owned subsidiary, it said. Profectus has assets under management of Rs 3,468 crore as of March 2025, with presence across seven states.
New Indian Express
5 days ago
- Business
- New Indian Express
Ugro acquires Profectus Capital in Rs 1,400 crore all-cash deal
MUMBAI: Small businesses focused non-bank lender Ugro Capital has announced the takeover of Profectus Capital for Rs 1,400 crore under which it will acquire 100% of shares of from the promoters of Profectus. Post this all-cash deal, Profectus will become a wholly owned subsidiary of Ugro, the company said in a statement Tuesday. Ugo expects the acquisition to add around Rs 150 crore to its annual profit. The acquisition will also drive Ugro's loan book by 29% helping it diversify the loan portfolio such as school financing, secured loan against property, machinery finance, and supply chain finance. Profectus has a assets under management up to Rs 3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, said Shachindra Nath, founder and managing director of Ugro and KV Srinivasan, chief executive of Profectus.
