URGO Capital, a data-tech MSME lending platform, is acquiring Profectus Capital Pvt. Ltd from UK private equity firm Actis in an all-cash deal amounting to ₹1,400 crore.
Cyril Amarchand Mangaldas advised Actis and Profectus Capital on this transaction.
The team advising Actis was led by Ratnadeep Roychowdhury, Partner; with the support from Anirud Sudarsan R, Principal Associate; Chandrendu Chattopadhyay, Associate; and Shaunak Choudhury, Associate.
The team advising the Profectus Capital was led by Anshu Choudhary, Partner; with the support from Suraj Soni, Consultant; Mahin Rai, Senior Associate; Nisha Nahata, Associate; Pramit Pandey, Associate; and Jyotiranjan Mallick, Associate.
SNG & Partners is advising UGRO Capital on this acquisition. The Firm provided end-to-end legal support on the transaction, including confirmatory legal due diligence, drafting and negotiation of transaction documents, advising on regulatory and structuring aspects, and handling shareholder and board approvals.
Amit Aggarwal, Managing Partner – Corporate & Non-Contentious Practice, led the transaction, offering strategic oversight. The core team comprised Aditya Vikram Dua, Partner and Head of Financial Services; Devyani Dhawan, Counsel; and Chandra Shekhar Mishra, Associate Partner; supported by Mohit Goyal and Carishma Bhargava, Associates.
The transaction will see Profectus become a wholly-owned subsidiary of UGRO and is expected to add ₹3,468 crore in assets under management (AUM) to UGRO’s portfolio, pushing its total AUM to approximately ₹15,500 crore. This strategic acquisition forms a key pillar of UGRO’s long-term growth plan, enabling it to significantly scale its secured lending portfolio and expand into new lending segments such as school and education finance. The transaction is expected to add approximately ₹150 crore in annualised profits and unlock operational synergies worth ₹115 crore. Additionally, the acquisition will enhance UGRO’s geographic reach and deepen its presence in India’s MSME lending sector.
Profectus brings with it a network of 28 branches across seven states and a well-performing loan book with gross NPAs at 1.6%. UGRO Capital’s stock surged 7% following the announcement, reflecting investor confidence in the deal’s strategic fit and profitability prospects. The acquisition is subject to regulatory and shareholder approvals, including from the Reserve Bank of India, and is expected to close in the coming months.
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