Recently DataTech Lending platform UGRO Capital launched a ‘MSME Accha Hai’ campaign on World MSME Day, highlighting MSMEs’ vital role in India’s economy, contributing around 30% to the GDP.
The ‘MSME Accha Hai’ campaign looked to celebrate MSMEs, supporting their shift to formal economy, improving credit access, and promoting business growth. UGRO’s in-house anthem, created using advanced AI, echoes their belief: “MSME AcchaHai.”
The company said that its prowess in Data Analytics and strong Technology architecture allows for customised sourcing platforms for each sourcing channel. GRO Plus module which has uberised intermediated sourcing, GRO Chain, a supply chain financing platform with automated end-to-end approval and flow of invoices, GRO Xstream platform for co-lending, an upstream and downstream integration with fintechs and liability providers, and GRO X application to deliver embedded financing option to MSMEs. The credit scoring model GRO Score (3.0) a statistical framework using AI / ML driven statistical model to risk rank customers is revolutionising the MSME credit by providing on-tap financing like consumer financing in India.
UGRO added that it has executed Co-lending model in India which is prevalent in the West through Co-Lending relationships with 10+ Large Public Sector Banks and large NBFCs and built a sizeable off-balance sheet asset of more than 45% of its AUM through the GRO Xstream platform. UGRO completed a milestone as CRISIL Ratings upgraded its long-term rating on bank loans and non-convertible debentures to ‘CRISIL A/Stable’ from ‘CRISIL A-/Positive’, affirming the short-term rating at ‘CRISIL A1’
The company is in the process of acquiring ‘MyShubhLife’ (MSL), a prominent Embedded Finance Fintech platform headquartered in Bangalore, for an enterprise value of INR 45 Cr through a combination of 64:36 Equity Cash transaction, thereby making it a wholly owned subsidiary. The company explains that it is backed by institutional investors (raised Rs. 900+ crores of equity capital in 2018, Rs. 340 Crores in 2023 and Rs. 1265 Crores in 2024) and aims to capture 1% market share over the next three years.
Medianews4u.com caught up with Ankit Chothani, head of marketing and corporate communications at UGRO Capital.
Q. From a marketing perspective what are going to be the focus areas for UGRO Capital in 2024?
UGRO Capital has been dedicated to addressing the critical credit gap for MSMEs in India since our inception six years ago. Driven by our mission to ‘Solve the Unsolved,’ we aim to revolutionise the MSME lending ecosystem and become India’s largest small-business financing institution, leveraging data and technology.
In 2024, we will expand our reach to over 150 more cities, especially in Uttar Pradesh, Madhya Pradesh, and Andhra Pradesh, promoting our brand and product suite in both existing and new markets, crossing over three hundred branches in total spread across the country. Our customer-centric campaigns will support our distribution model, catering to MSMEs across all geographies and ticket sizes. We will enhance our local branches with a mix of outdoor, print, digital, and trade marketing activities, alongside content partnerships, influencer outreach, public relations, and corporate IPs.
Leveraging digital and data-driven insights is crucial for optimising our strategies. We aim to enhance our digital presence, using AI-driven tools and advanced analytics for personalised, effective campaigns. Promoting financial and digital literacy through our programs with Laghu Udyog Bharati and organizing events with other industry bodies to empower small business owners remains a priority. Engaging our GRO Partners, OEMs, and ecosystem partners through various events and campaigns, and keeping them informed about our expanding product portfolio with innovative solutions tailored to the evolving needs of MSMEs, is also key.
Q. How did the idea of creating an anthem come about?
Since Day one, UGRO Capital has propagated and believed whole-heartedly in the idea that ‘MSME Accha Hai’. MSMEs have the opportunity, intent, and ability to drive business, and they are the backbone of India’s economy. But, despite their critical contributions, MSMEs often face challenges such as inadequate funding, which hampers their growth and potential.
World MSME Day on the 27th of June is crucial as it recognizes the vital role MSMEs play in fostering innovation, generating employment, and sustaining economic growth. With over 90% of businesses being MSMEs and employing 120 million individuals, their impact on the economy is irreplaceable. As a company that finances this sector, the day is of utmost importance to us.
The ‘MSME Accha Hai‘ campaign is our tribute to the heartbeat of our nation’s economy and our effort to support and uplift MSMEs across India. The ‘MSME Accha Hai‘ anthem is a call to action, urging MSMEs to embrace formalisation to access the easy credit they deserve.
Q. What role will AI play for UGRO Capital from operational efficiency to marketing innovations?
Being a DataTech NBFC, data and technology are embedded in UGRO Capital’s DNA. We leverage these tools for underwriting, identifying new markets, and communicating with key stakeholders. AI is a cornerstone of our strategy, driving both operational efficiency and marketing innovations.
Predictive analytics and AI help automate routine tasks, reduce manual intervention, and minimize errors. It allows us to anticipate customer needs and curate relevant, engaging content. This will enhance our internal processes and create a more personalised and engaging experience for all our stakeholders—investors, shareholders, lenders, partners, customers, and employees. Our AI-driven chatbots enhance stakeholder engagement by providing instant support and improving overall customer satisfaction in real time.
AI will continue to revolutionise our marketing strategies with hyper-targeted campaigns and personalized interactions. AI-powered tools will analyse customer behaviour and preferences, enabling us to identify emerging market trends and create tailored marketing messages that resonate with our audience. By harnessing the power of AI, we aim to establish the brand in such a way that we reach and connect with every last mile MSME.
Q. Does UGRO Capital adopt an omnichannel approach where both traditional media like print as well as digital are important?
At UGRO Capital, we recognise the importance of reaching our diverse stakeholders across the asset side, liability side, and capital markets through multiple touchpoints for comprehensive engagement and effective communication. We leverage traditional channels such as newspapers, magazines, outdoor advertising like the co-branded signages with our MSME customers, and partnerships with media and industry bodies like ASSOCHAM, PHDCCI, Laghu Udyog Bharati among others, to reach a broader audience. Our digital strategy includes social media campaigns, email and WhatsApp marketing, search engine optimization, and online advertising. These digital channels allow us to create a seamless and consistent customer experience.
By combining traditional and digital channels, we meet our stakeholders where they are, delivering tailored messages across various platforms. This integrated approach enables us to track customer journeys, refine our strategies, and ensure our communications are both effective and impactful.
Q. Is it a challenge to build trust equity with the MSME community when a lot of financial products are available?
The biggest challenge MSMEs face is easy availability of credit, and at UGRO, we service all credit needs of all MSMEs. So no, it’s not exactly an issue of building trust equity with the MSME community simply because because the sector is significantly credit-starved. At UGRO Capital, we recognise the acute need for reliable financial partners. By offering tailored, transparent, and accessible financial solutions, we fulfill a crucial gap, thereby naturally fostering trust and strong relationships with MSMEs.
Q. Does influencer marketing have a place in B2B marketing?
Influencer marketing and community building has played a key role for us across all our marketing campaigns.
Dealing with MSMEs across the country means that they all become representatives of UGRO Capital’s brand. For instance, our recent drive to engage in co-branded signages with our customers has resulted in these local stores with much influence and popularity in their respective areas playing the role of offline influencers for the company.
With the advent of mobile phones, the mode of connection to the Tier 2-3 cities has only gone upwards, in both quantity and quality. There is high consumption of content in these cities, and influencers play a big role here in capturing these markets; they become the advocates for a company to reach markets, and this is a marketing norm that is valid for not just B2C but B2B marketing as well.
Q. In UGRO Capital’s campaign messaging how important is the theme of empowerment?
The very theme for FY23-24 was empowering the MSME ecosystem. UGRO Capital wanted to go beyond just creating a narrative of helping MSMEs but the entire MSME lending ecosystem as whole.
Empowering MSMEs is at the core of our mission, as we aim to provide them with the financial tools and resources they need to grow and succeed. This theme resonates deeply with our target audience, highlighting our commitment to supporting their ambitions, fostering innovation, and driving sustainable growth. By focussing on empowerment, we communicate our role as a trusted partner dedicated to the progress and prosperity of the MSME sector. This emphasis on empowerment is reflected in our brand marketing, which showcases success stories, educational initiatives, and customer-centric messages that reinforce our dedication to enabling MSMEs to achieve their full potential.
Q. In terms of on-ground activities could you talk about seminars, and workshops being done?
Events, seminars, workshops are important vehicles to engage with our key stakeholders. We organise annual GRO Partner Meets and OEM meets across our target markets to keep up-to-date about the industry. We explore content partnerships with media to simplify the credit jargon. We engage with various industry bodies, like Laghu Udyog Bharati, wherein we taught and promoted digital credit to small businesses across India to reach a broad audience.
Q. Is UGRO Capital targeting the entire country or certain pockets for growth?
UGRO Capital is currently present in 10 states which includes Rajasthan, Gujarat, Telangana, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Maharashtra, etc., and across over 160 cities. Over the next six quarters, we plan to expand this number to a whopping 300 branch-count to live up to our promise of service every last mile MSME. By understanding the distinct needs and characteristics of each region, we craft targeted campaigns that speak directly to the local MSME communities.
