UGRO Capital—a Mumbai‑based DataTech NBFC specializing in MSME lending—announced it will acquire Profectus Capital Pvt Ltd in an all‑cash deal worth ₹1,400 crore. The acquisition, expected to be sealed in 2–3 months, will raise UGRO's loan book by about 29%, add ₹150 crore to annualised profits, and unlock synergies in secured lending and school financing. Here is a summary of key developments and expert insights.
/*Deal Overview & Strategic Intent*/
UGRO will fully acquire Profectus from UK‑based private equity firm Actis, making Profectus a wholly‑owned subsidiary upon regulatory and shareholder approvals. The all‑cash transaction—structured via proceeds from a preferential issuance of CCDs and internal accruals—comes with a one‑time payout at closing.
/*Financials & Operational Impact*/
Profectus managed ₹3,468 crore assets under management (AUM) as of March 2025, through a 28‑branch network in seven states and 800+ employees. UGRO expects an immediate ₹150 crore boost to net profits annually and ₹115 crore in cost synergies, enhancing its return on assets by 0.6–0.7 percentage points.
/*Product Synergies & Growth Avenues*/
Profectus specializes in secured lending—property loans, machinery finance, and supply‑chain finance—with low NPAs (gross 1.6%, net 1.1%). UGRO expects to tap school financing—a new ₹2,000 crore segment for it—while diversifying its portfolio and enhancing risk management.
/* Integration, Governance & Regulatory Steps*/
Independent operations will be operated by UGRO and Profectus during integration after the share purchase agreement has been executed. The transaction is subject to approval by the Reserve Bank of India and shareholders. UGRO's board approves the CCD issue supporting the deal funding on June 20
Business Standard's Abhijit Lele reported the acquisition "enhances secured‑asset mix and scales up UGRO's MSME lending size".