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 India. It’s an undeniable fact that India’s economic growth aspirations are more dependent on the MSME sector than one would think. Amit Mande, Chief Revenue Officer of U GRO Capital, is on a mission to mitigate this crater. U GRO 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, Amit has worked across various organizations, including multinational banks and large non-banking financial companies (NBFCs), and has been involved in the creation of several fintechs. 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 U GRO. What have been the most significant learnings throughout this journey?

We started U GRO as a dedicated MSME lender in 2027 with a goal to address the underserved credit needs of MSMEs, which traditional institutions had overlooked. Our first key learning was the importance of customer centricity. We realized that the credit gap existed because the unique challenges and cash flow patterns of MSMEs were not well understood by the industry. This insight led us to adopt cash flow 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 nearly impossible. Thus, we set out to become a data-tech lending institution.

On the other hand, we built a team that shared our vision of becoming the largest MSME lending franchise in the country, solving problems with data and technology. Our team of about 25 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 building one of the largest MSME lending franchises in the country.

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

Decision-making varies across different organizational levels, requiring distinct approaches. At senior levels, decisions are primarily data-driven. It is essential that decisions align with data, which can reflect past performance, future projections, and potential impacts on organizational growth. Sensitivity analysis is often used to understand how decisions might influence outcomes.

Leading with data involves more than just individual understanding; it requires a collaborative and democratized approach. Everyone in the organization should understand the science behind decision-making and participate in the process. This collective understanding ensures that decisions are made with consensus and commitment, with everyone giving their full effort. Thus, while decision-making is largely data-driven, the leadership style should be collaborative and democratic.

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, I have faced numerous challenges, both 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 U GRO, our initial challenge was to build a new brand, establish trust, and gain acceptance from customers, investors, and stakeholders. We have successfully navigated these challenges.

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 overcome them, positioning U GRO to become India's largest MSME lending franchise.

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 challenges in its early years, including financial crises involving DHFL and Yes Bank, 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 three years is a 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 ₹20,000 crores. This achievement reflects the dedication and shared vision of our team, which is committed to building the largest MSME franchise in the country.

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 the collective effort and commitment of everyone at U GRO as we work towards our common goal.

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

Throughout my experience, I have seen the importance of empowering teams, both for myself and for my colleagues, who continue to grow within the organization. The best way to achieve this 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 family environment. Additionally, we look for individuals who are passionate about solving real-world problems and possess empathy, as these qualities are essential for building strong teams. 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?

In today's rapidly changing environment, it is crucial to continuously upgrade your skills and stay informed about new developments. Unlike 20 or even 10 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 times. This continuous learning approach is vital for personal and professional growth.