UGRO Capital, a leading DataTech NBFC focused on MSME lending, said its embedded merchant lending platform GROx Technologies has achieved over ₹5,500 crore in cumulative loan originations within twelve months of its acquisition, marking a significant milestone in the company’s digital lending strategy.
The platform now aims to build a ₹5,000 crore assets under management portfolio as it expands across India’s merchant ecosystem.
India has over 35 million digitally active merchants, including kirana stores, pharmacies, fuel stations and neighbourhood businesses, many of whom generate consistent digital transaction histories but continue to remain outside the formal credit ecosystem.
Through embedded lending, UGRO subsidiary GROx enables these merchants to access working capital directly within the digital platforms they already use to conduct business.
GROx leverages UGRO Capital’s proprietary underwriting framework, which analyses multiple data sets including GST records, banking behaviour, transaction patterns and sector-specific benchmarks to evaluate creditworthiness.
The platform also uses Equated Daily Instalments (EDI) instead of traditional monthly EMIs, allowing repayments to closely match merchants’ daily cash flows while providing lenders with early warning signals in case of business stress.
Shachindra Nath, Founder and Managing Director, UGRO Capital said through GROx, the company combines embedded distribution with proprietary DataTech underwriting capabilities to make formal credit faster, more contextual and scalable for millions of merchants.
The strong traction achieved within a year demonstrates both the size of the opportunity and the effectiveness of the company’s technology-led lending model, he added.
According to industry estimates, the merchant credit gap exceeds $20 billion, while rapid adoption of UPI, QR-based payments and digital commerce is creating new opportunities for embedded finance. UGRO believes merchant lending will emerge as a key growth driver for MSME financing as lenders increasingly use real-time transaction data to underwrite businesses traditionally underserved by formal credit channels.
Published on July 30, 2026
