Mastercard, U GRO Capital to extend financing solutions to small enterprises

Hyderabad: Today, Mastercard and U GRO Capital, an NBFC specializing in MSME financing, announced a collaboration. They aim to provide financing solutions to small businesses in India facing financial challenges. Despite over 64 million MSMEs in India, only 14 per cent have access to credit.

This partnership seeks to address this issue by introducing a digital supply chain financing solution. U GRO Capital will use its assessment model to offer short-term credit to various small businesses. Mastercard, through its extensive network, plans to unite ecosystem stakeholders to support small business growth.

Vikas Varma, COO of Mastercard South Asia, highlighted the challenges MSMEs face in accessing capital. He emphasized the need for collective efforts and strategic partnerships. This collaboration aims to provide accessible working capital solutions for small businesses, fostering entrepreneurial success.

U GRO Capital employs a data-driven approach for MSME financing. Their proprietary underwriting model, the GRO Score, evaluates customers based on data analysis, going beyond traditional assessments.

Shachindra Nath, Vice Chairman of U GRO Capital, expressed excitement about collaborating with Mastercard. He believes this partnership aligns with their vision to reshape MSME finance and meet the demand for instant working capital.

Mastercard's global commitment involves bringing one billion people and 50 million small businesses, including 25 million female entrepreneurs, into the digital economy by 2025. This collaboration with U GRO Capital supports Mastercard's mission of driving financial inclusion for businesses in India.