UGRO Capital buys MyShubhLife in a Rs 45 Cr cash-stock deal

UGRO Capital on Thursday announced Board approval for the acquisition of ‘MyShubhLife’ (MSL) for an enterprise value of Rs 45 crore through a combination of 64:36 equity cash transaction. 

MSL, the Bengaluru-based embedded finance platform, will now operate as a wholly-owned subsidiary of UGRO Capital.

UGRO is “a lender which not only has access to an extensive balance sheet, but also has DataTech as its core DNA. Our primary objective is to employ technology as a catalyst for offering contextual and innovative credit products to small-scale shopkeepers and distributors across the nation,” said Monish Anand, Founder and CEO, MyShubhLife.  

MSL offers specifically-tailored solutions for small shopkeepers and distributors, which includes daily and weekly installment options, overdraft facilities along with strong underwriting and distribution capabilities. 

UGRO, a DataTech NBFC focused on MSME lending, reported a nearly 50% increase in Assets Under Management to Rs 9,047 crore during the quarter ended March 31, 2024. Over the next three years, the company expects an incremental AUM of Rs 1,500 crore and plans to achieve a PAT of Rs 100 crore with MSL as its subsidiary. 

MSL has already sourced over 15 million merchants and has partnered with Pine Labs, Fino, Airtel Payments Bank, MobiKwik, Spice Money, and Easy Pay, among others, for merchant financing. UGRO Capital seeks to onboard 200,000 new retailers within the next three years, after MSL is integrated with its products. 

MSL offers loans, savings products like insurance, SIPs, e-gold, and e-filing taxes. It raised $4 million (about Rs 29 crore) in a funding round led by Patamar Capital and some of its existing investors in 2021. A year later, it raised Rs 100 crore from Gojo & Company, Inc (Gojo) and was valued at Rs 240 crore. Its major investors include Gojo, Saama Capital IV Ltd., and BEENEXT2 Pte. Ltd., among others. 

In a regulatory filing filed with the BSE, UGRO also announced its Board has approved an equity capital raise of Rs 1,332.66 Crore through Compulsory Convertible Debentures (CCD) and Warrants. Samena Capital, one of the company’s existing private equity investors, committed Rs 500 crore through Warrants, while UGRO’s founder, board members, and management team together committed Rs 16.25 crores in Warrants.