UGRO Capital Ltd, a datatech lending platform, said it will acquire Profectus Capital for Rs 1,400 crore in an all-cash deal.

The acquisition is expected to add around Rs 150 crore of annualized profit to UGRO, making it a capital adequacy accretive transaction, UGRO said in a statement.

Besides, Profectus' complementary businesses in secured lending perfectly align with UGRO's data-driven underwriting platform, it added.

"The combined entity's strengthened asset mix features higher secured assets, thereby providing further impetus to scale emerging market and embedded finance businesses," it noted.

Both entities will maintain current operations and strategy during integration.

Profectus' assets under management stood at Rs 3,468 crore as of March 2025 with presence across seven states through a 28-branch network. 

“This strategically priced acquisition deploys our equity raise to achieve instant scale and Rs 115 crore cost savings and annualized incremental profitability of Rs 150 crore thus boosting ROA by 0.6–0.7%," said Shachindra Nath, founder and managing director of UGRO Capital.

In May 2024, UGRO Capital, which is backed by private equity firms Samena Capital and ADV Partners among others, had said it will acquire Bengaluru-based lending tech startup MyShubhLife.

“The coming together of the two organisations would be beneficial owing to the synergies and complementarity of the businesses, which should result in greater operational efficiency and profitability for the business," said K.V. Srinivasan, executive director & CEO, Profectus Capital.

InCred Capital acted as the exclusive advisor to UGRO Capital on this acquisition transaction.

The deal is subject to the Reserve Bank of India (RBI) and shareholder approvals.