UGRO sees massive jump in AUM and disbursements in FY25, powered by GRO and DPI

UGRO Capital has been able to give big-ticket LAP loans even in Tier-2 and Tier-3 cities, banking on technology and analytics. How have you achieved this?

We rely heavily on our analytics-driven property valuation models and geo-tagged verification systems to assess collateral in markets where formal records are often limited. Our dynamic LTV ratios, adjusted to a borrower’s profile and cash-flow strength, allow us to sanction higher-ticket LAP loans with confidence. Beyond collateral, we use cash-flow analytics from GST data, banking transactions, and digital footprints, all integrated into our proprietary GRO Score (UGRO’s internal analytics-based credit score). This gives us deeper underwriting insights.

Post-disbursement, our monitoring tools track repayment capacity and flag early warnings, making it possible to scale profitably even in Tier-2 and Tier-3 locations.

UGRO’s underwriting revolution hinges on the patented GRO Score. Can you explain how it works?

The GRO Score is our proprietary credit engine. It combines structured data such as GST filings, bureau records, and bank statements with unstructured data like demographic, digital, and behavioral signals. AI and ML models then generate a predictive, explainable score. This makes underwriting both faster and fairer. Many MSMEs lack strong collateral or bureau history, but when you combine traditional credit markers with alternative data, you create a more level playing field. That’s what GRO Score does, it democratizes access to credit for businesses that banks often overlook.

UGRO calls itself a “DataTech NBFC.” What does that mean in practice?

For us, DataTech is about marrying analytics with relationships. Our digital tools handle risk assessment and loan approvals, but our on-ground teams validate ground realities and build trust. For example, a kirana store owner’s eligibility can be assessed digitally using GST and UPI data, but before disbursal, our staff verifies details using methods that remove subjectivity. Similarly, in ecosystem lending, our partnerships with distributors provide real-time sales data that directly powers working capital loans. This hybrid approach and technology plus touch has helped us grow disbursements year-on-year while keeping defaults in check.

What kind of digital infrastructure have you built to ensure last-mile financing in smaller cities?

We’ve built a full-stack digital lending infrastructure. This includes paperless onboarding via Aadhaar eKYC, DigiLocker, and eSign. It also uses Account Aggregator integration for real-time cash flow insights. We also use mobile field apps with offline sync, vernacular support, and geo-tagging to empower our teams. On top of that, our fraud detection and automated repayment systems through UPI and NACH make the journey seamless. Even in low-connectivity areas, we can underwrite, disburse, and collect efficiently, giving us true scale in Tier-2 and Tier-3 markets.

How are you leveraging India’s Digital Public Infrastructure (DPI) for lending?

India’s DPI has been a game-changer. Aadhaar eKYC gives us instant identity verification, DigiLocker provides authentic documents, eSign eliminates paperwork, and Account Aggregator frameworks allow us to access verified financial data across banks. For repayments, UPI and BBPS bring security and speed. Together, these reduce acquisition and servicing costs, improve compliance, and most importantly, bring first-time borrowers into the fold.

UGRO has structured customer origination into four channels. How do digital tools fit in, and what scale have you achieved?

Our origination model is built on four strong pillars: Emerging Market Branches leveraging digital CRMs, AI-led lead scoring, and mobile apps to expand in Tier-2/3 cities; Prime Intermediated Business (PIB) that empowers DSAs, brokers, and connectors through APIs and portals; Ecosystem & Green Asset Channels that integrate with supply-chain and renewable energy partners for live transaction data; and Direct & Digital Alliances through our website, app, co-lending APIs, and platforms like MSL. 

Together, these channels drive balanced growth and risk management, enabling us in FY25 to achieve strong momentum with ₹12,081 crore AUM (+31% YoY) and ₹1,648 crore disbursements (+24% YoY).