New Delhi, June 21 (KNN) UGRO Capital Limited, a data tech lending platform on Wednesday raised Rs 240 crore from Investment Fund for Developing Countries (IFU), a Danish development finance institution for providing green finance to MSMEs.

The investment is made on behalf of the Danish SDG Investment Fund, which is backed by large Danish pension funds and private investors.

With this U GRO will be able to fund businesses that seek to transition into greening their business operations.

As part of the investment, it has been agreed to develop and implement a climate finance strategy framework as well as climate-related loan products that will support the green transition, IFU said. 

Vice Chairman and Managing Director, U GRO Capital told FE Aspire that this Rs 240 crore equity funding has already been disbursed as U GRO is also into green financing and sustainability lending.

“The IFU funding came last month to augment our capital and grow our business. We disburse around Rs 500-600 crore loans per month,” said Nath.

The investment in U GRO is in line with the green strategic partnership between India and Denmark that was signed by Prime Minister Narendra Modi and Denmark’s Prime Minister Mette Frederiksen two years ago.

“IFU has invested in more than 100 companies in India, and we have a prioritised sector approach towards renewable energy and green infrastructure, financial services, healthcare as well as sustainable food with current investments representing all sectors in India. India is expected to continue being a significant investment destination for IFU in the coming years,” said Deepa Hingorani, Senior Vice President, IFU.

IFU has received additional funds to invest in climate-related and green projects in India.  (KNN Bureau)