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Revenue based financing platform Klubhas joined forces with U GRO Capital, an MSME lending platform, to disburse funds worth Rs 150 crore to bridge the credit gap for micro, small, and medium enterprises (MSMEs) in India. 

With this collaboration, the two companies aim to provide quick and adaptable debt financing solutions for digital business globally. 

“Given the pivotal role MSMEs play in India’s economy and job market, addressing their credit requirement gap is a critical opportunity. Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach, but also aligns with the value we deliver to SMEs through our product selection and superior customer experience,” said Sudharsan Venkatkrishnan, Senior Vice President at Klub. 

This partnership also intends to extend credit to help digital small and medium-sized enterprises (SMEs) at various stages of growth. The allocated fund will facilitate lending across the country, providing adjustable debt financing of up to Rs 30 crores in one go through Klub’s platform.

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U GRO Capital has reported an AUM (Assets Under Management) of Rs 8,364 crore in December 2023, the company said.  

Using its underwriting model and range of products, U GRO Capital says it offers a digital platform with minimal paperwork and quick approvals. Its loans, spanning from Rs 1 lakh to Rs 5 crores, support different requirements like business growth, day-to-day operations, upgrading equipment, and promoting sustainable projects such as rooftop solar installation and EV financing. 

“Together, we aim to provide flexible working capital solutions to SMEs, bolstering their growth. This partnership not only expands our market reach but also enhances our digital offerings, reinforcing our shared commitment to supporting and scaling businesses,” said Tanya Chadha, Head – Partnership & Alliances at U GRO Capital. 

Founded in 2020, Klub has backed over 600 enterprises leading equity-free funding and helping businesses across sectors such as direct-to-consumer (D2C), electric vehicles (EV), ecommerce, health technology, clean technology, educational technology (edtech), and more. In 2021, Klub secured $20 million in seed funding from Sequoia Capital India‘s Surge, Alter Global,  GMO VenturePartners, and  9Unicorns. 

U GRO Capital Limited is a data-tech NBFC focused on MSME lending, which is listed on both the NSE and BSE. It aims to address the credit gap for small businesses in India, leveraging their extensive distribution network and data-centric approach. The company has garnered support from marquee investors, raising over Rs 900 crore of equity capital in 2018 and an additional Rs 340 crore in 2023.