UGro Capital turns profitable within one year of operations

Mumbai, Jan 31 (PTI) Within 10 months of operations, non-banking lender UGro Capital has become profitable with a net income of Rs 7 crore in the December quarter.

In the previous quarter, it had a net loss of Rs 3.3 crore.

The company''s disbursals crossed Rs 1,000 crore as of end-December with an active loan book of Rs 753 crore of which 67 per cent is secured, the company said in a statement on Friday.

The numbers are not comparable as the company was not operational this quarter last year.

Total income rose to Rs 23.7 crore from Rs 20.5 crore in the second quarter, a growth of 15.4 per cent.

During the December quarter, it announced co-origination partnerships with SBI, Bank of Baroda and ICICI Bank.

The company has raised Rs 194 crore in debt during the quarter, while its networth rose to Rs 901 crore, which includes Rs 66.2 crore of equity infusion from the exercise of warrants.

It has borrowed Rs 50 crore from Flipkart co-founder Sachin Bansal.

The numbers reflect the conservative underwriting strategies the company has implemented in the previous quarter, Shachindra Nath, executive chairman and managing director, said.

"We are proud of becoming the first fintech platform to achieve profitability within a year of operations," he added. PTI BEN MR MR RAM