U GRO Capital, Sunvest Capital Launch Rs 20 Crore Rooftop Solar Co-Lending Programme
The collaboration assumes significance as the government has set a renewable energy target of 175 GW by 2022 and solar rooftop energy is expected to contribute 40 GW to the overall target.
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U GRO Capital, a BSE listed, technology-enabled small business lending platform has entered into a co-lending programme with Sunvest Capital, India’s first dedicated rooftop solar financing NBFC, which will catalyse rooftop solar ecosystem and accelerate the efforts towards achieving the ambitious clean energy targets by the government.
Leveraging the expertise and market intelligence of Sunvest and the tech-driven knowledge of U GRO in SME lending, the co-lending programme with a corpus of Rs 20 crore will power the clean energy initiatives with an aim to help the MSMEs save the electricity cost hugely by offering them solar panel finance, besides reducing the carbon footprint in the country.
The collaboration assumes significance as the government has set a renewable energy target of 175 GW by 2022 and solar rooftop energy is expected to contribute 40 GW to the overall target. However, India has so far installed only 10 per cent of its rooftop solar target, leaving a huge potential for growth that is impeded by financial concerns among the MSMEs.
“We are delighted to join hands with Sunvest Capital. The co-lending programme will combine our knowledge-driven approach (sectoral focus) backed by technology with in-depth solar panel market insights of Sunvest Capital. We look forward to a long-term mutually beneficial relationship with Sunvest Capital to fill this market gap and join the nation-building through carbon mitigation and clean energy promotion,” said Shachindra Nath, Executive Chairman, U GRO Capital.
A new-age listed fintech platform, UGRO has already made a mark with its tech-enabled platform to solve the ever-growing credit gap in the SME sector. The company has developed proprietary tools which comprise of customized SME sector-specific statistical scorecards, underwriting insights based on deep sub-sector level research put together in a highly integrated technology platform. This helps in getting an in-principle decision for the loan application within 60 minutes. The Company has already disbursed more than $100 million across 6000and above small businesses in a short span of 10 months. Through the co-lending programme with Sunvest Capital, U GRO Capital aims to create a deeper social impact by facilitating solar panel finance to SMEs so that can reduce electricity overheads. At a broader level, the initiative will promote the use of green energy among the SMEs as well to protect the environment sustainability.
“We are excited to partner with U GRO capital in this co-lending arrangement. Sunvest has a deep understanding of the rooftop solar market in India and U GRO has unparalleled expertise in SME lending. With over 400 industrial clusters, MSMEs are the growth engine for India's industrial development and adopting solar energy has numerous economic, social and environmental benefits. Power costs are a big portion of MSME's overall expenditure and access to the right financial products will now help these businesses to go solar,” said Sishir Garemella, Founder & CEO, Sunvest Capital.
“We believe the timing of our partnership is ideal to capitalize on the long-term lending opportunity in solar and sustainability domains. We are confident that our partnership, a first of its kind, will catalyse the rooftop solar ecosystem. India is serious about tackling climate change and the world is looking at us to take meaningful steps towards carbon mitigation. Innovative financing will have a positive impact on reducing emissions while increasing productivity for small businesses," said Garemella.
Sunvest Capital brings on board years of deep market intelligence and expertise in rooftop solar segment. Sunvest is leveraging the latest fintech capabilities to provide end consumers with a seamless and hassle-free experience. The firm won the US India Clean Energy Finance grant in 2018.