UGRO Capital stops low yield lending to unlock higher returns by FY29

Published on 24 April 2026

A DSA-led book is being shut to avoid dilution

UGRO Capital has stopped originating new loans in its low-yield, DSA-led book, marking a major shift toward profitability. The firm is cutting costs and exiting a model it says has offered thin margins, with an aim to lift yields and avoid future shareholder dilution. It plans to focus instead on MSME lending and merchant partnerships.

UGRO Capital has halted new loans in its low-yield DSA-led book
Cost cuts and exit from thin-margin lending are driving the pivot
Management expects higher yields and reduced shareholder dilution risk
Strategy now centers on MSME lending and merchant partnerships

#profitability #ugro capital #loan strategy #msme lending #msme

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

UGRO Capital stops low yield lending to unlock higher returns by FY29

The full experience is on mobile.