UGRO Capital to acquire Profectus Capital for ₹1,400 cr

Time of India

a day ago

UGRO Capital Limited
, the DataTech NBFC focused on
MSME lending
, has acquired
Profectus Capital
Private Limited, for ₹1400 crore, company said on Tuesday.
This
all-cash deal
, with the consideration payable in a single tranche at closing, will make Profectus a wholly owned subsidiary.
Ugro signed a share-purchase agreement with existing investor - British
private equity firm Actis
, it said.
This acquisition would add approximately ₹150 crore of annualized profit to UGRO making it a
capital adequacy
accretive transaction, it said.
Profectus has demonstrated stable
portfolio expansion
, building its assets under management to ₹3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, all while maintaining a
gross NPA
of 1.6% and Net NPA of 1.1%, it added.
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Both entities will maintain current operations and strategy during integration.
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, 'This strategically priced acquisition deploys our equity raise to achieve instant scale and ₹115 Crores cost savings and annualized incremental
profitability
of ₹ 150 crore thus boosting ROA by 0.6–0.7%."
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."