It’s no secret that the Micro, Small & Medium Enterprises (MSME) segment is drastically underserved in everything from credit accessibility to technology transformation. But let’s look at some ironic statistics. The MSME sector in India contributes around 30 percent to the nation's GDP and about 40 percent to India's total exports. The sector has more than 110 million job opportunities in the country. India’s economic growth aspirations are closely tied to the MSME sector. Amit Mande, Chief Revenue Officer at UGRO Capital, is dedicated to addressing this critical need. UGRO Capital (NSE: UGROCAP) is a DataTech lending platform bridging the small business credit gap in India. Amit is a fintech leader who has withstood the test of time. Over the past 20 years, he has worked across various organizations, including multinational banks and large non-banking financial companies (NBFCs), and has been involved in building a number of business verticals. I recently got in touch with him and had an insightful one-on-one chat with him. Below is an excerpt from our exclusive interview with Amit.

 

Tell us about the inception story of UGRO. What have been the most significant learnings throughout this journey?

We started UGRO Capital as a dedicated MSME lender in 2018 with the goal of addressing the underserved credit needs of MSMEs, which traditional institutions have more often than not overlooked. Our first key learning was the importance of customer centricity. We realized that the credit gap existed because the challenges and cashflow patterns of MSMEs were not well understood by the industry. This insight led us to adopt cashflow lending as our primary approach.

The second major learning was the critical role of data and technology. As the India Stack and other alternative data sources evolved, we recognized that delivering customer-centric products required a robust technological and data analytics infrastructure. Without this, reaching and effectively serving our customers would be impossible. Thus, we set out to become a DataTech lending institution.

Furthermore, we built a team that shared a vision of servicing every need of every last-mile MSME. Our core team of about 50 members, drawn from various aspects of the lending industry—risk, collections, credit, business, sales, and strategy—brought together their collective knowledge and experience to address these challenges systematically. Together, we are well on our way to becoming India’s largest small business financing institution.

How would you describe your approach to decision-making and leadership style?

Decision-making within an organization requires distinct approaches across various levels. At the senior level, it is primarily data-driven, focusing on aligning decisions with insights drawn from past performance, future projections, and their potential impact on organizational growth. Sensitivity analysis plays a critical role in evaluating how different decisions might influence outcomes, ensuring that choices are well-informed and strategic.

However, leading with data goes beyond individual expertise; it demands a collaborative and democratized approach. It is vital for everyone in the organization to understand the principles behind decision-making and actively contribute to the process. This shared understanding fosters collective ownership, ensuring that decisions are reached through consensus and carried out with full commitment and effort from all stakeholders.

Therefore, while data-driven insights form the backbone of decision-making, the leadership style must remain inherently collaborative and democratic. By combining the precision of data with the strength of teamwork, organizations can achieve more cohesive and impactful outcomes.

The entire finance industry has faced several waves of challenges over the past two decades. What’s your mantra when it comes to facing challenges?

Throughout my career, the industry has seen a number of disruptions, both micro and macroeconomic, such as the Lehman Brothers crisis in 2008 and the COVID-19 pandemic, which significantly disrupted the industry. During these times, it is crucial to have unwavering conviction and to lead with confidence, ensuring that your team shares this conviction and acts appropriately.

I prefer to view challenges not as obstacles but as opportunities for growth. The term "challenge" implies something that must be overcome, and it is these challenges that drive us forward. When we started UGRO Capital, our initial challenge was to build a new brand, establish trust, and gain acceptance among customers, investors, and stakeholders. While it was not easy to make a mark in a financial industry, one where stakeholders are already quite skeptical of new players, I think it is safe to say that we have successfully done so.

Additionally, we faced macroeconomic and regulatory challenges. However, our single-minded focus on addressing the identified MSME credit needs and our conviction to build a large organization have been key. This focus has enabled us to take these challenges in stride and find ways to deal with and learn from them, positioning UGRO Capital as a significant player in the MSME financing space.

While performance and value addition are crucial, it is equally important for the organization's DNA and culture to focus on grooming and developing its members, helping them reach the next level

You have already crossed Rs.10,000 crore Assets Under Management (AUM). How significant is this milestone for you as a leader as well as your organization?

Our company, now six years old, faced significant market headwinds in its early years, including financial crises involving DHFL and ILFS, followed by two years of the COVID-19 pandemic. Despite these obstacles, we set an ambitious goal to capture 1 percent of the MSME credit market, aiming for an AUM of Rs.20,000 crores by 2025-26.

Achieving Rs.10,000 crores in AUM within virtually three years is a sheer testament to our strategic planning and execution. It proves that the plans we charted out four or five years ago were well-defined and that we are on the right track to reach our larger milestone of an AUM of ₹20,000 crores.

This milestone is significant not only for me personally but also for our entire team, stakeholders, investors who believe in us, and customers who have placed their trust in us. It underscores everyone's collective effort and commitment at UGRO Capital as we work towards our common goal.

How would you describe your team development, grooming and growth strategy?

I have recognized that the growth of an organization is closely tied to the growth of its people. The best way to achieve sustained success is by empowering your teams. While performance and value addition are crucial, it is equally important for the organization's DNA and culture to focus on grooming and developing its members, helping them reach the next level.

Empowerment involves standing by your team and supporting their decisions, which fosters growth within the organization and creates a cohesive environment. Additionally, we look for individuals who are passionate about solving real-world problems and possess empathy, as these qualities are essential for building an institution that aims to serve an underserved section of the industry. In today's rapidly changing world, an inclination towards technology and innovation must also be ingrained in the organization's DNA. By embedding these values into our organizational culture, we have been able to build a successful and resilient team.

What would be your advice to budding entrepreneurs in the financial sector?

It is crucial to continuously upgrade your skills and stay informed about new developments. Unlike twenty or even ten years ago, the business landscape, ecosystems, and customer expectations are evolving at an unprecedented pace. Key areas such as AI and machine learning are becoming increasingly important. While not everyone needs to become a coding guru, having a willingness to learn, adopt, and implement new technologies is essential. This mindset will help leaders, both current and emerging, remain relevant and thrive.

My advice is to consistently upgrade your knowledge and skills to stay current with the changing times. This continuous learning approach is vital for not just professional but also personal growth.