Revitalizing MSME Growth: UGRO Capital's Data-Driven Approach

UGRO Capital Ltd. and Dun & Bradstreet's 3rd MSME Sampark Report shows 64% of MSMEs resumed activity post-pandemic, with strong growth. However, investment growth in Udyam-registered MSMEs has slowed. UGRO's initiatives aim to continue formalizing and financing MSMEs while dealing with high capital costs and conservative lending.

UGRO Capital Ltd., in collaboration with Dun & Bradstreet, has published the 3rd MSME Sampark Report, highlighting the resilience and challenges faced by MSMEs. According to the report, 64% of MSMEs have resumed operations, and 54% have experienced a growth of over 10% Year-on-Year (YoY), demonstrating the sector's strong recovery post-pandemic.

The report notes a decrease in investment growth among Udyam-registered MSMEs, dropping from 61% in FY22 to 22% in FY23 and 23% in FY24. While larger businesses predict slower domestic growth, optimism persists among smaller firms. Capital costs remain high, challenging investment strategies, yet revised MSME classification criteria could spur future investment.

UGRO Capital's strategic initiatives are pivotal in bridging the credit gap for MSMEs. The report highlights growing formalization with businesses reporting lower cash holdings and improved debt-to-turnover ratios. Despite global uncertainties, UGRO continues to support MSMEs with innovative financial solutions, aiming to enhance the sector's sustained growth.

(With inputs from agencies.)