MUMBAI: UGRO Capital, a leading DataTech NBFC focused on MSME lending, today announced its robust performance for the quarter ended September 30, 2024 (Q2 FY25), marking significant milestones in its journey towards becoming a leading MSME-focused lender. The company has reached a total AUM of INR 10,200+ crore, growing from INR 2,970 crore in March 2022, underscoring its accelerated growth trajectory and investment in data tech infrastructure.

During Q2 FY25, UGRO Capital achieved several lifetime highs in key performance metrics:

Record Loan Originations: UGRO recorded its highest-ever quarterly net loan originations of INR 1,970+ crore, a remarkable 72% increase compared to INR 1,146 crore in Q1 FY25.

Micro Enterprises Lending Surge: UGRO’s Micro Enterprises Loan vertical saw origination of INR 450 crore, more than doubling from INR 209 crore in the previous quarter. This growth reflects the company’s expanded branch network, now at 210 branches, including 46 new micro-branches added during the quarter.

Co-Lending Milestones: UGRO achieved its highest quarterly co-lending volume of INR 600+ crore, up from INR 337 crore in Q1 FY25, with its co-lending partnerships expanding to 9 banks and 7 NBFCs. The company’s off-book AUM now stands at approximately 44%.

Strengthened Borrowing Profile: The company also mobilized its highest-ever borrowings, raising over INR 1,100 crore in Q2 FY25, up from INR 375 crore in Q1 FY25, ensuring a well-diversified liability profile.

Commenting on these achievements, Shachindra Nath, Founder, and Managing Director of UGRO Capital, said, “Our performance in Q2 FY25 marks a significant leap forward, driven by our unwavering commitment to providing innovative, data-driven financial solutions for MSMEs across India. Since our inception, we have raised over INR 900 crore in 2018, INR 340 crore in 2023, and INR 1,265 crore in 2024. With a robust network of 210 branches and a dedicated workforce of around 3,500 employees, we are poised to accelerate our efforts, particularly in the Micro Enterprises Loan segment. As we continue to grow, our focus remains on empowering MSMEs, encapsulated in our core belief – MSME Accha Hai – to unlock even greater opportunities for growth and development across the sector.”

In addition to its financial achievements, UGRO Capital received a rating upgrade from India Ratings to ‘IND A+/Stable’ (long-term) and ‘IND A1+’ (short-term), further solidifying its position in the market. The company was also honored with the ‘Best Fintech Lender of the Year’ award at Financial Express India’s Best Banks Awards, presented to Mr. Shachindra Nath by Hon’ble Union Minister of Finance & Corporate Affairs, Ms. Nirmala Sitharaman.

The business updates reflect UGRO Capital’s ongoing commitment to transforming MSME credit in India through technological innovation and strategic partnerships. These updates are subject to management review and have not yet undergone a limited review by the auditors.

The post UGRO Capital Surpasses INR 10,200 Crore AUM in Q2 FY25 appeared first on NRI News.

PUNE: Salesforce, the global leader in CRM, reinforced its commitment to digitally transforming India while talking to media in the city today. By leveraging Artificial Intelligence (AI) and automation, Salesforce aims to drive innovation across businesses of all sizes and industries, revolutionizing customer interactions and unlocking substantial business value.

Pune stands out as a key hub for Salesforce’s partner and startup ecosystems. Among the top ten emerging cities targeted by Salesforce, 25% of partners are based in Pune. Additionally, Pune is one of the most active hubs for the Salesforce Startup Community, with over 20 startups thriving in the city. Salesforce also collaborates with multiple automotive, BFSI, and manufacturing businesses within the city, aiming to redefine experiences for customers across sectors.

During the event, Arundhati Bhattacharya, CEO & Chairperson of Salesforce India, emphasized the importance of Pune in Salesforce’s growth strategy. “Technology adoption across India in recent years has been remarkable. Pune has emerged as a vibrant IT hub, leading the charge in technology adoption, innovation, and digital transformation. The emerging startup ecosystem is a testament to the innovation being driven by the city. Leading businesses across sectors are leading the change with digital transformation and we are delighted to be a part of their journey while strengthening our presence in the city.” she added.

Salesforce recently announced the launch of its Public Sector division in India to drive transformation, empowering government agencies and public sector organizations to enhance citizen experiences with Salesforce technology. Additionally, Salesforce introduced its first-ever made-for-India digital lending product. With 11,000 employees across Hyderabad, Bengaluru, Mumbai, Gurugram, Pune, and Jaipur, Salesforce continues to expand its footprint and influence in India.

The event highlighted how AI is fostering growth, improving customer relationships, and increasing employee productivity, underscoring Salesforce’s commitment to innovation and digital transformation in Pune and beyond.

The post Salesforce Accelerates Digital Transformation In Pune appeared first on NRI News.

INDIA: Tally Solutions, a leading name in the Business Management Software (BMS) industry, announces the launch of its new endeavor to educate over 6 lakh MSMEs in Pune and across Maharashtra about the benefits of the Account Aggregator (AA) Framework. The AA framework was launched by the Reserve Bank of India in the year 2016 to boost the open-banking ecosystem. Aligned with this, Tally launched its subsidiary, Tally Account Aggregator Services Pvt Ltd, with its product TallyEdge allowing users to effortlessly consolidate all their financial information from various financial entities in one place; with the capability to view or share that information securely, in real-time and only with their consent.

There are over 40 lakh MSMEs in Maharashtra registered with Udayam who can benefit from the account aggregator once on-boarded as part of their digital journey. Ensuring 100% secure digital data access, and consent-based data sharing with financial institutions, TallyEdge will help create easy access to the lending ecosystem and other financial services for these MSMEs. Industry projections indicate a significant credit gap of 25 trillion in the nation, with Maharashtra registering the highest debt demand at 20%. Tally aims to sensitise the MSME ecosystem and raise awareness about the benefits of AA, to mitigate this credit gap.

According to Samir Dixit, General Manager – West Zone, Tally Solutions, “As a key player in the Business Management Software (BMS) sector, we currently hold a 75% market share in the country and Maharashtra plays a significant role. With TallyEdge, our goal is to further extend our support to MSMEs facing challenges in accessing formal lending. In Pune, we are set to organize a series of awareness sessions in partnership with our allies and industry bodies in the coming months to promote an in-depth understanding of the AA framework and its potential for businesses”.

“With our commitment to further augment the MSME ecosystem, we aspire to onboard nearly 20 lakh businesses in India onto TallyEdge within the next 3 years. TallyEdge provides users with comprehensive control over their data, allowing them to effortlessly approve, reject, pause, or revoke any data-sharing requests. We are confident that through TallyEdge, we will not only strengthen the account aggregator ecosystem in the region but also empower more MSMEs to achieve their growth vision”, added Vikas Shetty, General Manager – Financial Services, Tally Solution.

In the initial phase, the awareness efforts will cascade through their extensive partner network in the region. Furthermore, the brand looks forward to partnering with large financial institutions to extend its reach. Through these efforts, Tally aims to make a substantial contribution to facilitating the formal lending journey of MSMEs.

The post Tally Solutions To Assist Indian MSMEs To Adopt Account Aggregator Framework appeared first on NRI News.

Speaking on the findings of this edition of the MSME Pulse, Sivasubramanian Ramann, Chairman and Managing Director, of SIDBI, said: “Lending to the MSME sector continued in H1:FY2024, despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, indicating underlying growth momentum of the sector. Technology is aiding in lending to the MSME sector. Facilitating wider adoption of online loan applications, financial management tools, and digital payment platforms along with the utilization of robust analytics, can enhance the lending to the MSMEs and help fortify India’s businesses for sustained growth. SIDBI is working on the above lines and is leveraging technology, utilizing the Digital Public Infrastructure of the Government of India, to augment credit flow to the sector with faster turnaround.”

In the July-September 2023 quarter, the total value of new MSME credit originations was INR 243K Crores, with Small segment enterprises accounting for the largest share at 42%. Sustained credit supply has enabled substantial portfolio growth of 11% amounting to INR 28.2 Lakh Crores across 80 Lakh MSME entities­ in the quarter under review.

During this period, overall balance-level delinquencies, measured as 90 days past due to 720 days past due and those reported as ‘sub-standard’, have improved and stood at 2.3%.

“MSME portfolio performance improved across all borrower segments as delinquency rates declined. In the quarter ending September 2023, we saw the lowest delinquency rate in the last two years. With promising economic growth prospects reflected through strong demand, stable portfolio growth, and improved credit performance, now is a good time for lenders to expand their MSME lending book. The sectoral study covered in this MSME Pulse report showcases the unique nuances of each sector within the MSME segment. The wide spectrum of occupations covered by MSMEs has the potential of catalyzing social development through economic empowerment,” added Rajesh Kumar, Managing Director and CEO, of TransUnion CIBIL.

The MSME portfolio excludes ~ ₹ 2.5 lakh crores of default cases beyond 720 days past due (DPD) /loss /doubtful category. The delinquency rate definition excludes legacy accounts with DPD beyond 720 days or reported as loss/doubtful

By building an online lending journey with analytical and objective credit risk assessment tools like FIT Rank, lenders can achieve improved operational efficiencies and reduce turnaround times significantly.

Rapid credit expansion across semi-urban and rural geographies

In the July-September 2023 quarter, 46% of MSME originations were in semi-urban and rural regions. Almost half (49%) of the Micro2 segment’s originations came from the semi-urban and rural areas, whereas 39% of originations in the Small segment came from these regions.

• Micro Exposure up to INR 1 Cr; Small: Exposure between INR 1 Cr and INR 10 crs; Medium Exposure between INR 10 crs and INR 50 crs
• Medium Risk: CMR 4-6 (Share of Borrowers)
• The risk percentage is based on the origination data where the risk score is available.

One of the key factors contributing to this expansion is the improvement in credit profiles of MSMEs – the share of high-risk MSMEs (CMR 7-10) has reduced to 13% in the July-September 2023 quarter from 15% during the same period the previous year. Medium risk (CMR 4-6) continues to have a high share with 55% of MSMEs in this risk segment. 

Analysis across the states shows that originations from the large states with Maharashtra, Gujarat, Delhi, Tamil Nadu, and Uttar Pradesh continue to be high, accounting for 47.2% of the origination value. There is also a higher growth rate especially in Uttar Pradesh and Tamil Nadu in the quarter ending Sep 2023.

These states also account for approximately 42% of New-to-Credit (NTC) originations in the Micro MSME segment, further driving the credit inclusion initiative. Within the Micro MSME segment, Maharashtra has a high share in the low-ticket-sized Very Small segment and Micro1 segment, while Gujarat has a high share in the Micro 2 segment.

The manufacturing sector accounts for the highest credit originations

As per the latest information released by the Ministry of Statistics and Programme Implementation in December 2023, output in MSME manufacturing accounted for 40.83% of output in all India manufacturing during the year 2021-22. This is also reflected in TransUnion CIBIL Commercial Bureau data where the Manufacturing sector accounts for 37% of value originated and has the largest share, followed by the ‘Trades’ sector with a 28% share. Professional Services and Other Sectors together account for the remaining 35% share (of the data considered for this report).

Textiles is the highest contributing sub-sector within Manufacturing sector originations. The majority of originations within sub-sectors are led by the Medium segment (10 Crores to 50 Crores) and catered for by private banks. The geographical distribution of originations across sub-sectors is concentrated in three top-contributing states: Gujarat, Tamil Nadu, and Maharashtra. While the manufacturing sector accounts for 37% of origination value it has only 25% share of the volumes originated. However, the manufacturing sector experienced an increased share in originations by value within the Micro segment compared to the previous year. The ‘Trade’ sector accounts for the highest share of origination volumes with 39% of loans originating; 36% of these disbursements are from NTC MSMEs.

As the borrower profile and credit behavior of each sector is different, these borrowers’ credit performance is also differently influenced by intrinsic sectoral impact. Leveraging data and analytics to understand borrower behavior is essential to continue sustainable growth across sectors.  The core advantage of sector-wide growth is the vast geographical expanse it covers, spreading through areas where urbanization and multiple employment opportunities and development are essential.

The post Credit Flow to MSMEs Continues To Grow With Broad-based Expansion Across Semi-Urban and Rural Geographies appeared first on NRI News.

MUMBAI: Mahindra & Mahindra Financial Services Limited, (MMFSL), part of the Mahindra Group, and one of India’s leading NBFCs today announced a collaboration with Lendingkart, a pioneer in financial services and one of India’s leading fintech companies. This co-lending partnership is set to provide business loans for the Small & Medium Enterprise (SME) sector and will boost Mahindra Finance’s product diversification strategy while fostering financial inclusion for small and medium enterprises.

This pan-India collaboration marks Mahindra Finance’s foray into the co-lending space exclusively for the SME sector under an 80:20 structure, where Lendingkart will leverage its tech platform Lendingkart 2gthr. Lendingkart 2gthr, the company’s flagship E2E platform will power the entire customer journey from origination to underwriting, disbursals, and collections.

Raul Rebello, MD&CEO – Designate, Mahindra Finance, said, “The SME sector is one of the fastest growing sectors, with a need for timely access to credit. Through this co-lending initiative, our collective objective is to transform credit decisioning, boost accessibility and create financial agility in the SME space. Together with Lendingkart, we aim to provide comprehensive and competitive financial solutions to the SME sector in our journey to be a responsible financial solution partner to emerging India”.

Harshvardhan Lunia, Founder & CEO, of Lendingkart Group, mentioned, “MSMEs are the backbone of the Indian economy, there’s no doubt about that. Over the last few years, Lendingkart has consistently pushed the envelope in digital lending and empowered MSMEs pan-India. We are proud of partnering with thousands of business owners every single day by making access to credit fast, transparent, and unbiased. This co-lending partnership with Mahindra Finance is a testament to our focus on fostering collaboration in the Indian financial ecosystem to better serve the underserved MSMEs and serve the national mission of financial inclusion. Together with Mahindra Finance, we will leverage our knowledge and expertise to simplify finance for an emerging India.”

Through this initiative, SME businesses will be able to capitalize on Mahindra Finance’s hyperlocal schemes and Lendingkart’s expertise as an MSME finance specialist thus creating a synergy that will positively impact SMEs seeking timely financial support. Recognizing the dynamic nature of the financial landscape, the collaboration is envisioned as a long-term commitment, with the initial agreement spanning three years.

The post Mahindra Finance Forays Into MSME-Focused Co-Lending Partnership With Lendingkart appeared first on NRI News.

PUNE: Lentra, the leading digital lending platform, introduced its Intelligent Lending Cloud Platform during its annual flagship event, the Lentra Digital Lending Summit.

Representing a significant leap in integrating AI within the digital lending platform, Lentra introduces three cutting-edge AI-driven products. Additionally, it incorporates 40 new functionalities into its existing products, all meticulously crafted to leverage the potential of AI and deliver practical utility for Banks and NBFCs.

“The evolution of trends in India’s credit consumption narrative demands thorough understanding and analysis. At Lentra, we strive to meet the increasing demand for personalization and localization by harnessing the power of AI, ensuring accessibility for our clients.” – Ankur Handa, Chief Product Officer at Lentra.

Lentra’s Intelligent Lending Cloud solution is designed to address the evolving need for Vernacular Languages to expand reach, accelerate processing speeds, and reduce the cost of operation.

“AI has recently garnered widespread attention for various reasons, with its capacity for human-like interactions standing out. Aligning with our mission to transform lending by empowering lenders to democratize credit and foster financial inclusion through intelligent decisions, we are thrilled to introduce a wave of AI products and AI-infused features. With this extended portfolio, we are confident that our clients will experience significant enhancements in their business, equipped with actionable intelligence.” – Rangarajan Vasudevan, Chief Data Officer at Lentra.

Lentra is actively advancing the application of AI in intelligently automating solutions for Banks and NBFCs in India. The initiatives include leveraging Machine Learning Models to identify potential borrower segments within the existing customer base, employing AI for intelligent customer engagement and lead nurturing. It utilizes behavioral intelligence to enhance upsell and cross-sell opportunities by implementing hyper-personalized product recommendations for the bank.

These initiatives, rooted in impactful applications, are a testament to Lentra’s commitment to innovation. Their intelligent cloud lending platform addresses current needs and anticipates market evolutions, positioning their partners ahead of the curve.

“With NIM itself becoming a non-differentiative commodity the focus amongst banks is becoming “experience”. How do we create a simple, easy, and yet WoW experience for our new customers? That is where the real differentiator lies! In the world of lending, there are quite a few one-trick ponies that address various components of lending. This is where someone like a Lentra is uniquely different. Their AI-powered solutions remove the friction from the entire lending and collection process, enabling decisions that are faster, fairer, and more accurate. We are impressed with how Lentra is continuously pushing the boundaries of their intelligence-embedded solutions and creating the WoW experience for end customers.”  – Cyrus Daruwala, Managing Director, Global Financial Services, IDC.

Lentra Convo:

To cater to lenders operating across varied geographic and cultural moorings, Lentra Convo brings the power of natural language conversations in multiple languages to simplify the loan origination journey. Powered by AI, this innovation enhances the lending process while providing end customers with a personalized and seamless experience that is convenient for them in the language of their choice.

Lentra Insights:

The second product, Insights, provides actionable intelligence to the lending institution, to better optimize credit policy and loan journey design. Coupled with AI-generated recommendations, lenders can now assess the impact of credit policy rules and change policy parameters to drive higher take-up rates. This one-of-a-kind tool will be of great value to lenders in boosting their asset businesses.

Lentra Wingman:

A game-changer for lending operations, Lentra Wingman is geared to help directly what is arguably the most critical stakeholder in the origination journey: the underwriter. It intelligently summarizes financial information from various sources in typical credit journeys like bank statements and related financial transaction records. It then automatically identifies financial behaviors that need further investigation by the underwriters. Such instances are then articulated as natural language questions that the customer-facing operations executive can air to the loan applicant to get needed clarifications. Thus, the Wingmanguides the underwriter to focus only on those loan applications requiring further scrutiny, along with the specifics of that application that merit attention, all in a form factor that makes it easy for more information to be collected seamlessly to speed up decision-making.

Aligned with the theme ‘Empowering Economic Growth for all, Bridging the Credit Gap,’ the Digital Lending Summit, provides a holistic perspective on the digital lending landscape in India. The summit serves as an interactive platform for CXOs, Credit Heads, Retail Heads, CEOs, and all other top-level executives in Banks & NBFCs, fostering discussions on market innovations, trends, enablers, and drivers.

The event features insightful panel discussions, special addresses, and breakout sessions and is a beacon for lending industry practitioners. Lentra’s flagship annual event consistently draws distinguished guests from the regulators, Prominent Banks, and NBFCs, underscoring its growing significance year after year.

The post Lentra Unveils New Innovation with its Intelligent Lending Cloud appeared first on NRI News.

PUNE: L&T Finance Holdings Ltd. (LTFH) the equity-listed holding company, today announced the successful completion of the merger of its subsidiaries, L&T Finance Ltd. (LTF), L&T Infra Credit Ltd. (LTICL) and L&T Mutual Fund Trustee Ltd. with itself. LTFH is a leading NBFC and offers a range of financial products and services under the L&T Finance brand. LTFH was the holding company while LTF and LTICL were high-value debt listed entities and operating entities. With this merger, all the lending businesses will be housed under one single entity i.e., LTFH, with it becoming the equity-listed operating lending entity.

The respective Boards of the said companies had approved the proposed merger in January 2023 and the process was completed post requisite approvals from shareholders, creditors, and regulatory/ statutory authorities – Reserve Bank of India (RBI), National Company Law Tribunal (NCLT), Securities and Exchange Board of India (SEBI), and Stock Exchanges.

The key benefits of the merger include:

o    Enhanced governance and controls – A single entity structure will help enhance governance and controls owing to the simplification of corporate structure and elimination of duplication of various processes at multiple subsidiaries

o    Astute Liability management – Liquidity management for a single entity would bring in treasury and operational efficiency in terms of cost incurred for managing liquidity at multiple entities (subsidiaries) vis–a–vis that of one entity; thus, helping in astute liability management

o    Ability to provide enhanced return to shareholders – LTFH will become an operating lending entity from a holding company (Core Investment Company) thus generating direct profits from the lending businesses which will increase its ability to provide enhanced returns to its shareholders

o    Seamless compliance and adherence to RBI Scale Based Regulations – LTF was categorized as NBFC – Upper Layer under the extant RBI regulations, which mandates listing on the stock exchanges within three years from the date of such categorization. This would have led to two entities being equity-listed within L&T Finance. The merger avoids the creation of two equity-listed entities while ensuring seamless compliance with the RBI Scale-Based Regulations concerning listing

o    Operational efficiency: A single entity structure will facilitate operational efficiencies in terms of better utilization of management bandwidth, consolidation of systems & controls, and reduction in administrative cost/expenses

Commenting on the merger, Dinanath Dubhashi, Managing Director & CEO, LTFH said “It gives me immense pleasure to announce that the merger has been completed before the envisaged time with all the necessary approvals in place. This merger is amongst the key strategic initiatives undertaken by us in line with the ‘Right Structure’ strategy that our Company has been implementing over the last seven years; with the number of NBFCs reducing from 8 to 1. The decision to merge two lending entities with the same NBFC – Investment & Credit Company registrations and one non-operating entity with LTFH was taken after carefully considering market dynamics, internal synergies, and a vision for sustained growth. With the merger, we believe we will be able to unlock newer avenues for growth, innovation, and long-term success. All these benefits would lead to superior governance that would create sustainable value for all stakeholders.” 

The post L&T Finance Holdings Ltd. (LTFH) completes the merger of its subsidiaries with itself appeared first on NRI News.

Muthoot FinCorp ONE offers an array of financial services, including MSME and Gold Loans, investment products like Digital Gold and NCDs, utility and loan payments, and Forex services. The platform will soon also help users access insurance for all kinds of General and Medical insurance needs.

Chandan Khaitan, CEO of Muthoot FinCorp ONE, said, “We are excited to introduce Muthoot FinCorp ONE, an all-in-one financial platform that brings together a comprehensive suite of financial services right from lending to investments to insurance to payments and remittances. We aim to cater to more than 1 million customers by the end of this financial year.“

The platform optimizes on a phygital model, which seamlessly combines the app with more than 3600+ physical branches of Muthoot FinCorp. The customer-first platform connects seamlessly with all stakeholders, including customers and partners alike. The platform is based on robust data analytics and leverages data science, using advanced models for Artificial Intelligence and Machine Learning, always ensuring cyber resilience.

Since its launch, Muthoot FinCorp ONE has already gained significant traction with more than 20,000 daily transactions and 2 Lakh plus app downloads, earning an average app rating of 4.8. In the next six months, Muthoot FinCorp ONE plans to expand the platform’s offerings by introducing insurance, personal loans, two-wheelers, housing loans, and more with a focus on achieving 80,000+ daily transactions and 10 Lakh app downloads.

Thomas John Muthoot, Chairman & Managing Director, Muthoot FinCorp Ltd., said, “Muthoot FinCorp ONE’s launch signifies a major milestone for us. It complements and builds upon MFL’s existing robust physical presence, through a phygital ecosystem. The all-in-one financial platform reinforces our dedication to transforming the way our customers access and manage their finances by providing them with tailored financial solutions to suit their everyday needs.“

Muthoot FinCorp ONE is an all-in-one digital financial platform that makes getting an MSME & a Gold Loan, investing in Digital gold & NCDs, making payments & remittances, buying insurance & exchanging forex, simple and convenient. As an SBU of Muthoot FinCorp Limited, Muthoot FinCorp ONE is backed by a legacy stretching back over 135 years and the trust of more than 1 crore customers and is building a holistic financial ecosystem using the latest digital products for lending, investing, protection, and payments.

The post Muthoot Fincorp Ltd. Launches Muthoot FinCorp ONE – All-In-One Financial Platform appeared first on NRI News.

“As we enter 2023, we hope to see renewed energy in the FinTech sector especially with the benefit of hindsight. Firstly, FinTechs will be more sure-footed when it comes to finding a product market fit that finds acceptance within the regulatory framework. Secondly, unit economics and profitability will be the guiding light for all new initiatives and current practices. With the confidence that the worst of the pandemic is behind us, lending across segments is expected to reach newer heights. With the new norms for lending in place, NBFCs and FinTechs will continue to grow strength to strength to consolidate their market share, enter new territories and impact the lives of millions of underserved customers in a credit-starved economy.”

The post Vaibhav Lodha Shares Year-end Outlook On Lending And Fintech Sector appeared first on NRI News.