Mahindra Finance Partners with UGRO Capital to Boost Credit Access for MSMEs

New Delhi, Sep 30 (KNN) In a move aimed at fostering the growth of India's Micro, Small, and Medium Enterprises (MSMEs), Mahindra Finance has announced a co-origination partnership with UGRO Capital Limited. 

This strategic alliance seeks to provide affordable loans secured against property, enabling MSMEs to access timely financial support for their business growth.

Under this collaboration, UGRO Capital will leverage its cutting-edge data analytics, vast distribution network, and strong ground presence to identify and reach MSME customers. 

Meanwhile, Mahindra Finance, known for its widespread brand equity and financial expertise, will help extend credit access to a broader spectrum of MSMEs across diverse geographic locations. 

The combined strengths of both companies are expected to create significant synergies, benefiting small businesses in urgent need of funding.

Raul Rebello, Managing Director & CEO of Mahindra Finance, expressed optimism about the partnership’s potential to fill the credit gap for small businesses. 

“The partnership with UGRO Capital will help bridge the small business credit gap, enhancing the growth of India’s MSME ecosystem. We will aim to provide comprehensive financial solutions to the sector, helping their businesses grow in our mission of being a responsible financial solution partner to emerging India,” he said.

Shachindra Nath, Founder and Managing Director of UGRO Capital, highlighted the shared vision of the two companies in advancing financial inclusion. 

“Our collaboration with Mahindra Finance in this strategic partnership will significantly boost access to credit for MSMEs. Together, we aim to deliver timely and efficient financing solutions, furthering our shared commitment to financial inclusion,” he stated.

The MSME sector, often referred to as the backbone of the Indian economy, has faced challenges in accessing adequate and timely credit, especially in the wake of the pandemic and economic disruptions. 

This partnership is poised to ease some of these challenges by offering affordable, secured loan options designed specifically for the needs of small and medium businesses.

As both companies bring their strengths to the table—UGRO's technological prowess and Mahindra Finance’s financial reach—this collaboration could play a pivotal role in fostering a more resilient and inclusive MSME landscape in India.

(KNN Bureau)