Klub and U GRO Capital will extend credit to support digital SMEs across different growth stages through this partnership.
Klub, a revenue-based financing platform, announced that it has partnered with U GRO Capital, a data-tech NBFC focused on MSME lending, to disburse Rs 150 crore aimed at bridging the credit gap for micro, small, and medium enterprises (MSMEs) in India.
Through this partnership, Klub and U GRO Capital will extend credit to support digital SMEs across different growth stages. The allocated fund of Rs 150 crores will facilitate lending activities across India, offering scalable debt financing of up to Rs 30 crores in a single tranche through Klub’s platform.
U GRO Capital offers a digital platform, minimal documentation, and expedited approvals, ensuring a seamless borrowing experience for businesses. Their loans, ranging from Rs 1 lakh to Rs 5 crore, support various needs such as business expansion, working capital, equipment upgrades, and sustainable initiatives like rooftop solar installation and EV financing, with competitive interest rates and flexible repayment terms.
Additionally, Klub's investment platform combines financial product innovation, deep data-driven analytics, high-frequency collections, and community engagement, providing tailored funding solutions to SMEs and start-ups.
Sudharsan Venkatkrishnan, Senior Vice President at Klub, said, “Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach but also aligns with the value we deliver to SMEs through our product selection and superior customer experience.”
Tanya Chadha, Head of Partnerships and Alliances at U GRO Capital, said, “Together, we aim to provide flexible working capital solutions to SMEs, bolstering their growth. This partnership not only expands our market reach but also enhances our digital offerings, reinforcing our shared commitment to supporting and scaling businesses.”
The MSME sector plays a crucial role in India's economic landscape, contributing to about 30 per cent of the country’s GDP. However, accessing credit remains a significant challenge for these enterprises, hindering their growth potential. The partnership between Klub and U GRO Capital aims to address this gap by providing accessible and flexible financing options tailored to the diverse needs of MSMEs, as per the company statement.