UGROCAPNSE27 April 2025

Ugro Capital Limited has informed the Exchange about Investor Presentation

Ugro Capital Limited

27th April 2025

To BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block Bandra, Kurla Complex, Bandra (East) Mumbai 400051

Scrip Code – 511742

Symbol – UGROCAP

Subject: Investor Presentation for the quarter and year ended 31st March 2025

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith investor presentation for the quarter and year ended 31st March 2025.

This is for your information and records.

The aforesaid information is being made available on the Company's website at www.ugrocapital.com

Thanking You,

For UGRO Capital Limited

Satish Kumar Company Secretary and Compliance Officer Encl: a/a

UGRO CAPITAL LIMITED

Registered Office Address: Equinox Business Park, Tower 3, 4th Floor, LBS Road, Kurla (West), Mumbai - 400070 CIN: L67120MH1993PLC070739 Telephone: +91 22 41821600 I E-mail: info@ugrocapital.com I Website: www.ugrocapital.com

UGRO Capital Limited Building an Institution for MSME Lending

Data Tech Empowering Small Businesses (MSME) Lending

Q4’FY25 Earnings Presentation 26 April 2025

NSE: UGROCAP | BSE: 511742

Slide 1

Safe Harbor

This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions.

This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India.

There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes

The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company available at www.ugrocapital.com before making any decision on the basis of this information.

Certain statements contained in this presentation that are not statements of historical fact constitute forward- looking statements. These forward- looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward- looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience in recent years, but these assumptions may prove to be incorrect.

Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose.

This presentation and its contents are for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person.

Slide 2

Q4’FY25 Snapshot: Record Growth through Expansion and Strategic Initiatives

Consecutive origination Quarter:

highest

loan

INR 2,436 Cr compared to INR 2,098 Cr in Q3’FY25 and INR 1,554 Cr in Q4’FY24

the Successful embedded finance disbursements:

initiation

MSL acquisition(1) achieved AUM of INR 743 crore as of March 2025

Focus on Emerging Market (EM) channel(2):

85 Emerging Market branches added in FY25 taking total branch count to 235

Highest ever disbursement by Emerging Market channel:

Mobilized highest ever borrowings in a quarter:

Stable Asset Quality:

INR 669 Cr in Q4’FY25 vs. INR 203 Cr total disbursement for Q4’FY25

in Q4’FY24; 27% of

INR 1,500+ Cr in Q4’FY25 vs INR 1,400+ Cr in Q3’FY25 and INR 4,600+ Cr in FY25

GNPA maintained at 2.3% with all portfolio stable; parameters provision coverage maintained at 47%.

(1) The process in underway and the regulatory approval is awaited. (2) ‘Micro’ has been renamed as ‘Emerging Market’ for better reference to our focus segment

Slide 3

Performance snapshot for Q4’FY25 and FY25

Q4’FY25

Q4’FY24

AUM (INR Cr)

12,003

Net Disbursement (INR Cr)(2)

Off-book AUM

2,436

42%

9,047

1,554

45%

33%

57%

269 bps

FY25

12,003

7,651

42%

FY24

9,047

5,867

45%

33%

30%

269 bps

EPS for FY25(5) INR 15.7 per share

Net Total Income %(3)

14.1%

16.9%

277 bps

13.7%

14.8%

354 bps

Pre-Tax Profit (INR Cr)

PAT (INR Cr)

57.2

40.5

55.9

32.7

24%

203.1

143.9

Cost to Income Ratio

51.8%

52.0%

26 bps

53.8%(1)

ROA(3)

ROE(4)

2.5%

8.9%

2.7%

9.2%

25 bps

2.4%(1)

33 bps

8.7%

178.8

119.3

53.8%

2.8%

9.9%

14%

21%

0 bps

Price to Earnings Ratio (P/E) 10.5x

35 bps

(Basis BSE price as on Mar 31, 2025)

111 bps

(1) Excluding the impact of EM branch expansion, Cost to income is 51.0% and ROA is 2.9% for FY25

(2) Net Disbursement = Gross Disbursements – Repayment received in Supply Chain Financing during the period ; (3) On Average On-books AUM for the relevant period; (4) Annualised for quarters and excluding equity component of CCDs; (5) Diluted EPS for FY25 of INR 14.7

Slide 4

Key metrics for Q4’FY25 and FY25

Asset Growth

Profitability

Asset Quality

AUM As of Mar’25 : 12,003 Cr (+33% Y-o-Y)

Net Loans Originated Q4’FY25 | FY25: 2,436 Cr | 7,651 Cr (+57% | +30% Y-o-Y)

Portfolio yield (net) As of Mar’25: 17.3%

Net Total Income Q4’FY25 | FY25: 231 Cr | 814 Cr (+14% | +27% Y-o-Y)

PPOP Q4’FY25 | FY25: 111 Cr | 376 Cr (+15% | +27% Y-o-Y)

Net Profit Q4’FY25 | FY25: 41 Cr | 144 Cr (+24% | +21% Y-o-Y)

GNPA As of Mar’25 : 2.3% (Mar’24: 2.0%)

NNPA As of Mar’25 : 1.6% (Mar’24: 1.1%)

Liability & Co - lending

Borrowings As of Mar’25 : 6,904 Cr

Co-lending - Partnership with 17 co - lenders / co - originators - 5,087 Cr off-book AUM

(+25% Y-o-Y)

Collection efficiency(1) Mar’25 : 95%

Cost of Borrowings As of Mar’25 : 10.61%

(1) Total Collections (including overdue) / Current month demand

Slide 5

Serving a diverse set of customers with multi-product, multi-channel strategy

UGRO’s Focus

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1Cr – 15Cr Customer Turnover

Secured Biz. Loan: Rs 84L Biz. Loan*: Rs 19L Prime Machinery: Rs 42L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz/Mch: 12/3/4 yrs

Channel AUM Mix: 49% Sec/Biz/Mch : 21%/26%/2%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 3Cr Customer Turnover

Rs 16L Average ticket size

Yield: 19% Tenure: 9 yrs

Rs 1Cr – 10Cr Customer Turnover

Rs 36L Average ticket size

Yield:. 15% Tenure: 4 yrs

Channel AUM Mix: 22%

Channel AUM Mix: 11%

Tech Stack

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/ 26% Tenure: 4 yrs/ 1 yr

Channel AUM Mix: 10%/6%

Tech Stack

GRO line

*CGTMSE backed

Products sold across channels: Intermediated: Secured Biz. Loan, Biz. Loan, Rooftop Solar and Machinery; Emerging Market: Secured Business Loan, Rooftop Solar and Machinery; Equipment finance and Green Asset Financing: Direct distribution and across other channels; Digital business & Alliances: Digital business and Embedded finance

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 6

Emerging Market Snapshot- Y-o-Y

# of branches

FY25

212

FY24

127

Quarterly trends- Last 5 quarters

Strategy- Current/ Target

67%

# of branches:

• Target to increase the number of branches to 400 by March 2026 and increase geographical presence in another 2-3 states.

# of states

187

201

212

127

141

# of logins

35,143

19,847

77%

Mar-24

Jun-24

Sep-24

Dec-24 Mar-25

Disbursement (INR Cr)

1,869

722

159%

Channel AUM (Rs cr) trend:

AUM (INR Cr)

2,596

1,144

127%

1,144

1,279

2,073

1,644

Channel AUM Mix %

22%

13%

898 bps

Mar-24

Jun-24

Sep-24

Dec-24 Mar-25

2,596

• Significant

focus

increasing the volumes.

• The AUM mix is planned to increase from current levels to approx. 32-35% in the next 4-6 quarters.

Our Emerging Market Channel continues to grow quarter on quarter with steady volumes and increase in number of branches as desired

Slide 7

Embedded finance platform (MSL) acquisition tracking as per plan

Market opportunity

Monthly disbursement trend (INR Cr)

MSL Performance so far..

65mn Total Merchants

45mn Digital Merchants

35mn Digitally enabled small Merchants & Retailers(1)

$22bn+ Annual Credit Requirement for Small Retailers (2)

92% Credit Gap(3)

222

253

250

113

134

Nov-24 Dec-24 Jan-25 Feb-25 Mar-25

$20bn+

Annual Credit Gap

Partnerships

• Our targeted acquisition of the embedded finance platform (MSL) has tracked to the right scale.

• We have seen good traction for the partner volumes, with monthly run rate of Rs 150cr to Rs 200cr.

• Out of total universe of ~3 crore merchants pertaining to MSL’s partners, we have served 74,000+ customers. The AUM as of Mar-25 is INR 743 Cr.

• The approval process for completion of

acquisition is ongoing.

Source: Paytm DRHP, SBFC DRHP | Notes: (1) Total number of merchants using QR payments are considered as small retailers, (2) Considering INR 50k average ticket size, (3) Credit gap for small retailers

Slide 8

Our collection efficiencies and portfolio performance remains stable

Collection Efficiency remains stable

ECL Data (Mar’25)

Total Collections (1) (including overdue) / Current Month Demand

96%

95%

(INR Cr)

Loan Exposure

Loan Exposure (%)

Stage 1

Stage 2

Stage 3

Total

11,135

588

280

12,003

92.8%

4.9%

2.3%

100.0%

Product wise GNPA

Product Category

AUM (INR Cr)

GNPA(%)

Q3FY24

Q4FY24

Q1FY25

Q2FY25

Q3FY25

Q4FY25

Key highlights:

• GNPA / NNPA as a % of Total AUM stood at 2.3% / 1.6% as of Mar’25

• Stage 3 provisioning coverage stood at 47%

Secured Business Loan

Business Loan

Emerging market Loan

Machinery Loan

Partnerships & Alliances

Embedded Finance AUM(2)

2,479

3,153

2,596

1,577

1,181

743

12,003

(1) Excluding foreclosures (2) AUM including run down portfolio of SCF amounting to INR 274 Cr. GNPA % at peak SCF AUM levels was 3.9% (Dec’23) which increased to 14.6% (INR 40 Cr) as of Mar’25 due to run down of portfolio

0.6%

4.0%

2.6%

1.3%

0.7%

0.2%

2.3%

Slide 9

Our collection efficiencies and portfolio performance remains stable

Stable Stage 1 assets

Stable Stage 3 assets

94%

93%

94%

93%

2.0%

2.1%

2.3%

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Mar'25

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Mar'25

Adequate Provision Coverage Ratio

49%

48%

47%

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Mar'25

Slide 10

Unique capital light liability strategy

Demonstrated ability to manage a prudent mix of on-balance sheet and off-balance sheet approach

On-Balance sheet Diversified Lender base across Lending Institutions – Banks, Large NBFCs and DFIs. Multi product approach through TL, NCDs, MLDs, CPs

Co-Lending with Banks/NBFCs Partnership with PSBs, Pvt. Banks and Large NBFCs to achieve scale with lesser leverage and lower on-balance sheet risk

Co-lending

On-Book

Assignment

Assignments with FIs 100% PSL Loan book leading to higher demand of securitized pool and a lever to manage ALM

Actively partnering with liability providers and focus on building a long-term relationship

Slide 11

Overall off book ratio maintained

High proportion of oﬀ - Book AUM mix

Product wise Mix of oﬀ - Book AUM (Mar’25)

On Book Portfolio

Off Book Portfolio

3,313

3,170

1,680

274

1,642

45%

44%

42%

55%

56%

58%

Sep'23

Dec'23

Mar'24

Jun'24

Sep'24

Dec'24

Mar'25

Sep’23

Dec’23 Mar’24

Jun’24

Sep’24

Dec’24 Mar’25

Off Book AUM

3,405

3,765

4,078

4,114

4,493

4,902

5,087

Co-lending

1,166

1,474

1,685

1,839

2,222

2,350

2,474

Co-Origination

1,604

1,615

1,610

1,513

1,398

1,412

1,352

635

676

784

762

874

1,141

1,260

49%

51%

Secured Business Loans

1,628

30%

51%

19%

Secured Business Loans

35%

65%

61%

39%

100%

51%

49%

1,181 9%

743

91%

100%

Business Loans

Emerging Market LAP

Supply Chain Financing

Machinery Financing

Partnership & Alliances

Embedded Finance

On-Book

Off-Book

1,927 6% 43%

51%

595

46%

54%

Business Loans

Emerging Market LAP

- Supply Chain Financing

105

100%

832

34%

58%

Machinery Financing

Partnership & Alliances

#DIV/0! - Embedded Finance

Co-Origination

Co-lending

Co-lending Partnership with 10 Banks and 7 NBFCs

Slide 12

Diversified Lender base and continued build-out of liability book

Total Debt (INR Cr) and Cost of borrowings

Liability mix by lender profile

Liability mix by product

10.70%

10.73%

10.75%

10.68%

10.61%

Cost of Borrowings

4,653

4,529

5,344

6,904

6,151

15%

Total Debt INR 6,904 Cr

46%

11%

19%

1% 4%

26%

Total Debt INR 6,904 Cr

55%

14%

Q4'FY24

Q1'FY25

Q2'FY25

Q3'FY25

Q4'FY25

Banks

NBFC

DFI

FIs

Capital Markets

Term Loan

ECB NCD CP Others

(Others includes CCD, Sub-debt, CC/OD & Securitization)

Our liability sanctions have been raised from a diverse set of lenders

Public Sector Banks and Institutions

Private Sector Banks

DFIs

NBFCs

Slide 13

Finance | Quarterly Income Statement

Income Statement (₹ Cr)

Q4’FY25

Q4’FY24

Y-o-Y

Q3’FY25

Q-o-Q

Interest Income

Income on Co-Lending / Direct Assignment

Other Income

Total Income

Interest Expenses

Net Total Income

Employee Cost

Other Expenses

PPOP

Credit Cost

PBT

Tax

PAT

264.3

119.3

28.7

412.4

181.2

231.1

54.7

64.9

111.5

54.3

57.2

16.7

40.5

190.3

122.4

17.7

330.4

128.1

202.2

51.4

53.8

97.0

41.1

55.9

23.3

32.7

39%

(3%)

62%

25%

41%

14%

21%

15%

32%

(28%)

24%

254.4

103.6

26.9

385.0

167.3

217.7

64.6

58.8

94.2

41.3

53.0

15.5

37.5

15%

(15%)

10%

18%

32%

Slide 14

Finance | Income Statement and ROA Tree

Income Statement (₹ Cr)

FY25

FY24

Y-o-Y

FY23

ROA Tree

FY25

FY24

Interest Income

Income on Co-Lending / Direct Assignment

Other Income

Total Income

Interest Expenses

Net Total Income

Employee Cost

Other Expenses

PPOP

Credit Cost

PBT

Tax

PAT

958.7

382.9

100.1

704.6

307.5

69.6

1,441.8

1,081.7

627.8

814.0

235.6

202.3

376.2

173.1

203.1

59.2

143.9

442.9

638.8

182.9

160.9

295.0

116.3

178.8

59.4

119.3

36%

25%

44%

33%

42%

27%

29%

26%

27%

49%

14%

21%

As a % of On Book AUM

Total Income

24.3%

25.1%

Interest Expenses

10.6%

10.3%

Net Total Income

13.7%

14.8%

Opex

Credit cost

PBT

PAT

7.4%

2.9%

3.4%

2.4%

8.0%

2.7%

4.2%

2.8%

Key Ratios

FY25

FY24

Leverage

RoE(2)

3.4x

8.7%

3.2x

9.9%

482.9

154.1

46.8

683.8

293.3

390.5

140.7

109.1

140.6

56.8

83.8

44.1

39.8

(1) Excluding the impact of EM branch expansion, Opex as % of On-book AUM is 6.7% and ROA is 2.9% for FY25

(2) Excluding Equity component of CCDs

Slide 15

Operating & Financial Metrics

Total Income (INR Cr) & Portfolio Yield(1)

Finance Cost (INR Cr) & Cost of Borrowing

Operating Exp. (INR Cr) and Cost to Income

17.7%

16.6%

17.7%

16.7%

17.8%

16.7%

18.2%

16.9%

18.7% 17.3%

10.70%

10.73%

10.75%

10.68%

10.61%

52.0%

54.1%

52.7%

56.7%

51.8%

330

302

343

385

412

128

136

143

167

181

105

123

120

Q4'24

Q1'25 Total Income

Q2'25 Gross Yield (%)

Q3'25

Q4'25 Net Yield (%)

Q4'24

Q1'25 Finance Expense

Q2'25

Q3'25

Q4'25

Cost of borrowing (%)

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Operating Expenses

Cost to Income Ratio (%)

Credit Cost (INR Cr) & Credit cost / Avg AUM(2)

PBT (INR Cr) and PBT / Avg. On Book AUM(2)

PAT (INR Cr) and PAT / Avg. On Book AUM(2)

1.9%

1.5%

1.8%

1.6%

1.9%

4.7%

3.4%

3.7%

3.6%

3.5%

2.7%

2.4%

2.6%

2.5%

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Q4'24

Credit Cost

Credit Cost/ Avg AUM

Q1'25

PBT

Q2'25

Q3'25

Q4'25

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

PBT/ Avg On-book AUM

PAT

ROTA %

2,046 Cr

Net Worth

12,003 Cr

AUM

42%

Off book %

6,904 / 19.4%

Total Debt / CRAR

2.3% / 1.6%

GNPA / NNPA (Total AUM)

235

150,000+

Branches

Active Borrowers

(1) Weighted Average AUM yield as on Period End (2) Annualized ratio based on quarterly average of AUM and On book AUM

Slide 16

Forward-Looking Guidance, Positioning for Sustainable growth

Slide 17

Prime Intermediated: Secured Business loans

Parameters

FY25 exit (Q4FY25) Near term Strategy

Disbursement (INR Cr)

299

Planned increase by 15%-20%

Productivity (INR Cr p.m./ FOS )

1.10

Planned increase by 15%-20%

33% Expected to continue at similar levels

Ticket size (INR Cr)(1)

0.85

Expected to continue at similar levels

Yield %(1)

Tenor (months) (1)

GNPA %

13.4% Pricing pressure expected due to competitive landscape

148

Expected to continue at similar levels

0.6% Expected to stabilize at 0.8%-1%

Credit cost- % of Avg AUM

0.8% Expected to continue at similar levels

(1) The numbers pertain to disbursements of Q4FY25

Slide 18

Prime Intermediated: Business loans

Parameters

FY25 exit (Q4FY25) Near term Strategy

Disbursement (INR Cr)

285

Planned reduction by 25%-30% to maintain favorable balance of Secured loans in overall portfolio

Productivity (INR Cr p.m./ FOS )

0.9

Expected to continue at similar levels

18% Expected to continue at similar levels

Ticket size (INR Cr)(1)

0.25

Expected to continue at similar levels

Yield %(1)

Tenor (months)(1)

GNPA %

18.2% Expected to continue at similar levels

Expected to continue at similar levels

4.0% Expected to continue at similar levels

Credit cost- % of Avg AUM

1.9% Planned increase by 20-25 bps due to planned rundown of book.

(1) The numbers pertain to disbursements of Q4FY25

Slide 19

Emerging Market: Secured Loans

Parameters

FY25 exit (Q4FY25) Near term Strategy

Disbursement (INR Cr)

669

Expected to increase significantly with increase in # of branches

Productivity (INR Cr p.m./ branch)

1.1

Expected to continue at similar levels

Closing # of branches

212

Expected to increase to 400 branches

Ticket size (INR Cr)(1)

0.2

Expected to continue at similar levels

Yield %(1)

Tenor (months)(1)

GNPA %

17.6% Expected to increase by 30-40 bps with optimization of mix of

higher yielding Secured loans

125

Expected to continue at similar levels

2.6% Expected to increase to 3.7%-4% in line with portfolio vintage

Credit cost- % of Avg AUM

1.0% Expected to increase by 30-50 bps in line with portfolio vintage

(1) The numbers pertain to disbursements of Q4FY25

Slide 20

Ecosystem Channel & Green Asset Financing

Parameters

FY25 exit (Q4FY25)(1) Near term Strategy

Disbursement (INR Cr)

287 Planned increase by 15%-20%

Productivity (INR Cr p.m./ FOS )

0.7 Planned increase by 15%-20%

40% Expected to continue at similar levels

Ticket size (INR Cr)(2)

0.37 Expected to continue at similar levels

Yield %(2)

Tenor (months)(2)

GNPA %

13.4% Expected to continue at similar levels

52 Expected to continue at similar levels

1.3% Expected to reduce to 1%-1.1%

Credit cost- % of Avg AUM

0.2% Expected to increase by 10-15bps in line with portfolio vintage

(1) This includes Intermediated Machinery numbers as well (2) The numbers pertain to disbursements of Q4FY25

Slide 21

Direct & Digital Alliances

Parameters (Alliances)

FY25 exit (Q4FY25)

Near term Strategy

Disbursement (INR Cr)

# of active partners

Yield %(1)

Tenor (months)

GNPA %

308 Expected to continue at similar levels

64 Expected to continue at similar levels

15.2% Expected to continue at similar levels

36 Expected to continue at similar levels

0.7% Expected to continue at similar levels

Parameters (Embedded Finance)

FY25 exit (Q4FY25) Near term Strategy

Disbursement (INR Cr)

638 Expected to continue at similar levels

Yield %

Tenor (months)

GNPA %

26% Expected to continue at similar levels

12 Expected to continue at similar levels

0.2% Expected to increase to 2.7%-3%

(1) The numbers pertain to disbursements of Q4FY25

Slide 22

MSME lending : The largest opportunity today

Slide 23

For India’s GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion

Today

India’s GDP in FY2028

FY2028

MSME 35-40%

~6.3 Crore MSMEs

MSME 35 – 40%

~24 Crore employment

~30% of GDP

MSME 35-40%

~8 – 10 Crore MSMEs

~35-40 Crore employment

~30-40% of GDP

MSME sector expected to grow to USD ~2 trillion by FY2028

Rapid digitization, expansion of the ecommerce Penetration of the Digital India Stack 2.0 Rising digital payments; India accounts for 45% of global transactions Other initiatives: Account Aggregator Framework, OCEN, ONDC Continuous support from Government

Slide 24

MSME sector is the key to India’s ‘Employment Generation’, making it one of the Central themes of Government in the last decade MSME count to grow to ~10 crores employing 35-40 crores

Slide 25

…well supported by continuity in Government initiatives

Government Initiatives throughout the years

Financial Support for MSME Growth - 2025

•

2014 - Pradhan Mantri MUDRA Yojana (PMMY)

Budget Allocation

2015 - Udyog Aadhaar Memorandum (UAM)

2016 - Stand-Up India Scheme

2017 - MSME Samadhaan, MSME Sambandh

2018 - 59-minute loan portal, Interest Subvention Scheme for MSMEs

2019 - MSME Support and Outreach Program

2020 - Emergency Credit Line Guarantee Scheme (ECLGS)

2021 - Raising and Accelerating MSME Performance (RAMP) Program

2022 - Revised Credit Guarantee Scheme for MSMEs

2023 - Credit guarantee trust, Vivad se Vishwas scheme

•

For Ministry of MSME: INR 23k Crores

Revised Classification Criteria

•

The investment and turnover limits for classification of MSMEs have been increased by 2.5 times and 2 times, respectively.

Enhanced Credit Availability

•

The credit guarantee cover has been increased from ₹5 crore to ₹10 crore, enabling additional credit of ₹1.5 lakh crore over five years.

Startups will see their guarantee cover double from ₹10 crore to ₹20 crore, with a reduced fee of 1% for loans in 27 priority sectors.

Credit Cards for Micro Enterprises

• A new customized Credit Card scheme will provide ₹5 lakh in credit to micro enterprises registered on the Udyam portal, with 10 lakh cards set to be issued in the first year.

Others

• A scheme for 5 lakh first-time women, Scheduled Caste, and Scheduled Tribe entrepreneurs will provide term loans up to ₹2 crore over five years, incorporating lessons from the Stand-Up India scheme.

Slide 26

Building a large institution for MSME financing is a real possibility Explosion of Credit in MSME Segment: Large market opportunity, conducive macro, favorable policy framework

Total MSME Credit gap is INR 1,03,000 Bn

Credit Gap of our customer segment constitutes majority portion

Overall MSME Credit Addressable Market

FY24: INR 1,38,000 Bn

Credit Gap

FY24: INR 1,03,000 Bn

MSME addressable credit demand

FY24: INR 67,500 Bn

Medium Enterprise No. of entities – 0.04L

Medium

Small

Small Enterprise No. of entities – 4.7L

UGRO’s Target Customer Segment T/o INR 25L - 15Cr

Micro

Micro Enterprise No. of entities – 623L

Unserved Customers

Source: IFC report on Financing India’s MSME; Crisil Report.

Slide 27

UGRO Capital: Well-placed to capitalize on the opportunity

MSME Focused Lender targeting large credit gap

Targeting MSME sector which has substantial credit gap of ~INR 103 lakh crore

Analytics Powered

Pan-India Presence

trailblazing data-driven India’s underwriter, cashflow transforming the MSME credit landscape

based

Extensive network pan India, with branch network of 235, expanding fast

Large Capital Base

Capital Light Model

Multi-product Capability

Marquee investors have invested ~INR 2,700 crore in 3 rounds

Pioneered “Unique Capital Light Liability Strategy” by co-lending with Banks and large NBFCs and assignment of the PSL book for greater scale

Prime, EM LAP, Machinery, Roof- top Solar, Partnership & Digital alliances products cater to the entire MSME ecosystem

Slide 28

UGRO’s Data & Tech driven approach

Slide 29

UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs

Build phase Infrastructure build at inception during Covid, pivoted to cash flow based underwriting models

Early Validations At Dec 2022, 87% of organic prime business was using GRO Score

Maturing phase

term

portfolio long performance starting to emerge

Growth Phase industry an Become benchmark in data-driven decision making for MSME

First Banking scorecard and Gro Score 2.0 (Jul 21) In house analytical rule engine for fast deployment of analytics strategies

API integrations Data layer First gen Gro Score on look- alike data from credit bureau

Industry first statistical model using GST data Gro Score 3.0 as a combination of Bureau + Banking + GST

2022-23

2021-22

2020-21

Develop Network Science, ability to create blueprint of large supply chains First generation eligibility recommendation model

2023-24

2024+

Gro Score 4.0 – 100% digital including hyper- underwriting customization personal interactions Sector specific data models based on proprietary data and knowledge Doubling of credit productivity with stable asset quality

Data Repository- Mar’25

6.9L+

Bureau Records analyzed

2.8L+

Bank Statements analyzed

95k+

GST records analyzed

150k+

Customer served

Slide 30

Data driven by AI/ML powers our core underwriting :

Ability to capture alternate data from banking and bureau…

…to draw meaningful insights out of unorganized data...

Across Multiple parameters

Turnover and transaction intensity

Borrowing mix and nature

Cheque bounces & bank charges

Frequency and magnitude of defaults

Payment cycles

History of high-cost debt/credit card usage

Obligations as % of turnover

Balances and withdrawals

Counterparties & relative strengths

Pace of borrowing

GRO 2.0 Credit Bureau Data + Banking Data

GRO 3.0 Credit Bureau Data + Banking Data + GST

GST

Bank

Bureau

Matches Banking & Bureau Scorecards to generate one single score which further gets augmented with GST data as an external input

Machine generates 25,000+ data features applicant’s from bureau record and bank statement

… and decide whether to disburse or not disburse the loan within 60 minutes.

Artificial Intelligence Engineering of making Intelligent Machines and Programs

Machine Learning Ability to learn without being explicitly programmed

Deep Learning Learning based on Deep Neural Network

Historical aggregation – several pages of statement going back 12 months can be summarized instantly

Normalization – convert absolute values to scale, for even comparison

Trending – create changes over standardized measure of comparison across diverse nature of entities, sectors, geographies

time,

Scoring of each case into one of the five bands of A – E with A being the best and E being the worst

Slide 31

A C GRO Score – Risk Bands Stacking up on Historical Portfolio

Default rates across score bands – All customers assessed Since Inception

Score Band wise break up of recent disbursals (Oct 24 – Mar 25)

3.0%

1.9%

0.9% 0.6%

1.2%

0.8%

1.7%

1.1%

A+&A

D,E

Disbursed cases

Not Disbusred cases

Segments A+,A, B – contributing to majority share of disbursals and lever for calibrated increase of throughput

41%

GRO Score A+ to C ~87%

37%

A+&A

To that effect we have analysed both sets of data i.e. cases disbursed and rejected by UGRO. Performance across risk bands was observed to be stacking up for both sets of data

Explanation note : Scores are computed based on repayment track record of loan applicants and submitted bank statements. Default rate tracking is done based on quarter-end credit bureau data; “default” represents incidence of 90 dpd in any business purpose credit facility reported in bureau during a period of six months from the point of assessment at UGro Capital

Slide 32

Our System Architecture supports full SME lending

Secured

Business Loan

Factoring

P&M Loans

OD product

EV / Solar

Digital Finance

Co-lending

Embedded Finance

Bureau + Banking

GROSCORE 2.0

GSTN

Bureau + Banking + GSTN

GROSCORE 3.0

UGRO’S PROPRIETARY TECH CAPABILITY

Co-lending

Supply Chain

D2C Offering

Credit BRE

Origination

Retailer

GRO line

Operational Data Store (Data Lake)

In-House LMS

Qualtech LMS

Jayam LMS

Dedupe System

Collection System

BANKING PARTNERS

A FEW KEY API ECOSYSTEM PARTNERS

DEVELOPMENT PARTNERS

Slide 33

Multi-product, multi-channel Asset Engine

Slide 34

Serving a diverse set of customers with multi-product, multi-channel strategy

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1cr – 15cr Customer Turnover

Secured Biz. Loan: Rs 84L Biz. Loan*: Rs 19L Prime Machinery: Rs 42L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz/Mch: 12/3/4 yrs

Channel AUM Mix: 49% Sec/Biz/Mch : 21%/26%/2%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 3cr Customer Turnover

Rs 16L Average ticket size

Yield: 19% Tenure: 9 yrs

Rs 1cr – 10cr Customer Turnover

Rs 36L Average ticket size

Yield:. 15% Tenure: 4 yrs

Channel AUM Mix: 22%

Channel AUM Mix: 11%

Tech Stack

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/ 26% Tenure: 4 yrs/ 1 yr

Channel AUM Mix: 10%/6%

Tech Stack

GRO line

*CGTMSE backed

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 35

Sector Focused Approach, Multiple Products and Large Distribution Strength

Emerging Market

Light Engineering

Auto Components

Chemicals

Food Processing

Education

Healthcare

Electrical Equipment & Components

Hospitality

Business Loan

Retailer Finance

Our Product Offering

Business Loan Secured by Property

New Age Products

Machinery Loan

Emerging Market LAP

9 sectors are further subdivided into multiple sub-sectors basis homogeneity of cash flows among MSMEs

Prime Branches

212

EM Branches

730+

GRO Partners

10+

Green Anchors

70+

OEMs

60+

Fintech Partners

2,100+

Front-end Sales

Slide 36

Highest-ever Net Loan Origination (Q-o-Q) Amount in INR Cr

Disbursement is up 57% YoY; Disbursement excluding Supply Chain Financing(1) is up 51% YoY

109

1,459

193

173

206

418

360

1,284

172 153 151

429

363

1,477

209

167

188

524

304

1,552

261

225

180

590

244

-89

1,554

322

227

203

627

264

-184

1,146

156

196

209

524

244

1,971

2,098

-98

277

291

456

623

422

-61

335

233

260

543

412

376

2,436

638

308

287

669

285

299

-50

Q4'FY23 Secured Business Loans

Q1'FY24

Q2'FY24

Q3'FY24

Q4'FY24

Q1'FY25

Q2'FY25

Q3'FY25

Business Loans

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Q4'FY25 Embedded Finance

Note: Secured Business Loan is secured by property, Business Loan is secured by CGTMSE, Emerging Market LAP is secured by property, SCF is secured by receivables, Machinery Loan is secured by machinery, Partnerships & Alliances are secured by FLDG, Embedded Finance through MyShubhlife (MSL) platform (1) Strategic decision to rundown lower yielding SCF book

Slide 37

Strong AUM Growth Trend (Q-o-Q) Amount in INR Cr

AUM increased to INR 12,003 Cr as of Mar’25 from INR 11,067 Cr as of Dec’24 (+8%) and INR 9,047 Cr as of Mar’24 (+33%)

33%

9,047

1,112

12%

1,161

632

1,144

13%

9,218

1,108

1,238

439

1,279

2,914

32%

3,055

11,067 302 1,199

1,454

309

2,073

12,003

743

1,181

10%

1,577

14%

274

2,596

22%

3,336

3,153

26%

10,157

1,184

1,360

355

1,644

3,314

7,592

849

891

670

2,352

871

8,364

967

1,034

722

1,000

2,639

1,958

2,002

2,084

23%

2,098

2,300

2,393

2,479

21%

608

6,081

715 701 567

1,871

1,619

727

6,777

750

798 585

2,081

1,837

Q4'FY23

Q1'FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25

Q3FY25

Q4FY25

Secured Business Loan

Business Loan

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

Slide 38

Well diversified, granular and stable portfolio quality

Product Mix (AUM)

Portfolio Concentration in key geographical areas

Sector Mix

10%

21%

13%

14%

State wise AUM coverage

22%

12%

Guaranteed by CGTMSE

Rest of India < 1%

15%

10%

24%

10%

13%

Secured Business Loan Emerging Market LAP Machinery Loan Embedded Finance

Business Loan Supply Chain Financing Partnerships & Alliances

Product category

Secured Business Loan

Business Loan

Emerging Market Loan

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Embedded Finance

AUM (Cr)

2,479

3,153

2,596

274

1,577

1,181

743

ROI (%)

Ticket size (Lakh)

14.1%

18.8%

19.0%

15.1%

14.6%

15.4%

26.0%

Grand Total

12,003

17.3%

State wise branches

Tamil Nadu Madhya Pradesh Rajasthan Andhra Pradesh Maharashtra Telangana Karnataka Gujarat Uttar Pradesh Other States

Total

42 32 28 26 19 15 15 14 11 10 212

Prime

Total

1 3 2 2 6 1 1 1 1 5 23

43 35 30 28 25 16 16 15 12 15 235

18%

21%

31%

Auto Components

Chemicals

Education

Electrical Equipment

Food Processing

HealthCare

Hospitality

Light Engineering

Emerging Market

Other MSME

Slide 39

Shareholding, Board, and Management

Slide 40

Institutionally Owned: Majority held by Institutional Investors

Shareholding Pattern as of Mar’25

Fully diluted shareholding pattern(1)

Other Public shareholders, 30.5% 39k+ shareholders

16.4%

(Investment arm of Denmark govt.)

Other Public shareholders, 26.8%

Insurance Cos, 1.8%

FPIs, 3.4%

Corporate, 5.7%

16.2%

MSL shareholders, 0.5% Insurance Cos, 1.2%

FPIs, 2.2%

Corporates, 9.6%

10.5%

(Investment arm of Denmark govt.)

10.4%

Promoter, 2.2%

16.2%

7.5%

Founder and Management, 4.9%

5.5%

17.9%

Management to potentially own 7 Mn shares on a fully diluted basis; vesting conditions are tenure linked over period of next 3 years, thereby aligning management’s goals towards company’s performance and ultimately shareholder returns

(1) considering full allotment of shares issued on preferential basis

Slide 41

We are Independently supervised by eminent Board of Directors

Non-Executive Chairman

Satyananda Mishra Chairman, Corporate Social Responsibility Committee Ex-Chairman- MCX, Ex-CIC, GOI, Ex-Director - SIDBI

Independent Directors

Karnam Sekar Ex - MD & CEO of Indian Overseas Bank

Hemant Bhargava Ex-Chairman in charge and MD of LIC

Rajeev K. Agarwal Ex-Whole Time Member, SEBI

S. Karuppasamy Ex-Executive Director, RBI

Tabassum Inamdar Ex Goldman Sachs, UBS Securities, Kotak Securities

Committee Chairman Risk Management

Committee Chairman Audit

Chetan Gupta (Samena Nominee) Managing Director at Samena Capital

Committee Chairman Nomination & Remuneration, Stakeholder Relationship, Securities allotment and Transfer committee

Committee Chairman IT Strategy, Compliance & Customer Service

Nominee / Shareholder Directors

Suresh Prabhala (ADV Nominee) Partner at ADV

Rohit Goyal (IFU Nominee) VP at IFU

Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance

Slide 42

With strong corporate governance framework enshrined in the Articles

▪

High degree of regulatory oversight and transparency

An institution created with a long-term view, designed for continued operational efficiency

Access to permanent capital

▪ Any proposed loan >1% of net worth or to a related party to require unanimous approval of ALCO and the Board

▪ Board approved multi-layer credit authority delegation

▪ Removal of key management (including CRO, CFO) to

require 3/4th board approval

▪ Any significant action by the Company to need 3/4th

approval of the Board

▪

Reputed Audit Firm to be appointed as the statutory auditors

Sharp and Tannan appointed as the statutory auditor and Khimji Kunverji & Co appointed as the co-sourced firm for internal audit

▪ Independent directors to comprise majority for

perpetuity

▪ Any shareholder holding >10% to qualify for a board seat

▪ Key committees to be headed by an independent member

with required credentials

▪ The majority of the NRC, ALCO and Audit Committees to

comprise of independent directors

Special Resolution of Shareholders required for effecting any changes to the AoA; Promoters/Management do not have unfettered rights to divert business strategy

Slide 43

Professionally Managed: Leadership team has 165+ years of cumulative experience

Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance

Amit Mande Chief Revenue Officer 24+ Years of Experience

Anuj Pandey Chief Risk Officer 25 Years of Experience

Kishore Lodha Chief Financial Officer 23+ Years of Experience

Sunil Lotke Chief Legal & Compliance Officer 21+ Years of Experience

Rajni Khurana Chief People Officer 24+ Years of Experience

Sharad Agarwal Chief Operating & Technology Officer 25+ Years of Experience

Slide 44

Regulatory updates Co-lending

Slide 45

RBI Guidelines on Co-lending (2020 Circular)

RBI circular dated November 05, 2020

➢ Loan sanction - Joint contribution of credit by banks and NBFCs

➢ Interest rate - Blended rate to be offered to customers

➢ Common Escrow Account: The Bank and the NBFC shall open common escrow account for disbursal as well as repayments

➢ Sharing of risks and rewards – Banks and NBFCs to share risk and rewards in loan sharing ratio.

➢ Grievance Redressal: The originator will be primarily responsible for providing the required customer service and grievance redressal to the

borrower.

➢ Collection & Efficiency: The originator shall be responsible for collections of receivables under default

➢ Enforcement of Security: The originator shall act as servicing agent for enforcement of security

Slide 46

Draft RBI (Co-Lending Arrangements) Directions, 2025

RBI issued draft guidelines on Co-lending for comments, broadly includes:

• Unified framework for all Co-lending arrangements (CLAs) between

Regulated entities (REs)

•

REs must include CLA provisions in internal policies and disclose roles in

borrower agreements

Borrower consent required for any changes in RE roles

Customer protection and grievance redress mechanism mandatory

• Unrealised profits from CLAs must be deducted from net owned funds

until loan maturity

Blended interest rate based on funding shares of Res; fees must be

separate from credit guarantees

•

Loans must be shared from the first disbursement; internal audits and

business continuity plans required

KYC compliance by all REs; borrowers may escalate grievances to RBI’s

Complaint Management System (CMS)

Each RE to report its loan share to credit information companies

Default Loss Guarantee (DLG) allowed upto 5% of outstanding portfolio

Asset classification (e.g. SMA/ NPA) must be uniform across REs

REs must publicly disclose CLA partners, interest rate ranges and key

metrics

Existing Circular on Co-lending (2020) to be repealed; existing loans to

All charges to be disclosed in the Key Fact Statement (KFS)

continue until repayment

Separate accounts to be maintained by each RE; escrow account used

unless sourcing-only

Slide 47

•

Thank you

www.ugrocapital.com

Slide 48

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