UGRO Capital gets RBI nod for Profectus Capital acquisition

UGRO Capital Limited announced on September 18, 2025, that it has received Reserve Bank of India (RBI) approval for its acquisition of 100% shareholding in Profectus Capital Private Limited. The transaction is expected to close by October 31, 2025, after which Profectus Capital will become a subsidiary of UGRO Capital, with a merger application to follow, effective April 1, 2025.

This ₹1,400 crore all-cash acquisition, partly funded by UGRO’s recent equity raise, is projected to deliver immediate scale with a 29% growth in Assets Under Management (AUM), strengthen UGRO's secured asset mix, and diversify its portfolio. The combined entity will have an AUM exceeding ₹15,000 crore and serve over 2 lakh MSMEs across India.

The acquisition is anticipated to generate ₹115 crore in cost savings and add approximately ₹150 crore of incremental annualized profit, enhancing Return on Assets (ROA) by 0.6-0.7% post-merger. It also unlocks incremental opportunities exceeding ₹2,000 crore in school financing.