NeoGrowth is a Mumbai-based fintech that provides technology-led, quick, and hassle-free loans to MSMEs across more than 70 segments. It serves businesses from neighbourhood kirana stores to eateries and salons across over 25 locations in India. The startup says it has served over 150,000 customers and disbursed over $1 billion in loans. Founded by Dhruv Khaitan and Piyush Khaitan, NeoGrowth plans to accelerate MSME growth and promote financial inclusion using the digital payments ecosystem. The company intends to use the newly raised capital to expand reach, improve efficiency, and integrate underserved micro-entrepreneurs into mainstream financing. Its financing strategy includes debt facilities from global investors and a history of capital raises from development and impact-focused backers. NeoGrowth is a fintech lender that provides loans to first-time entrepreneurs, women business owners, and underserved small businesses across roughly 70 MSME segments. The company serves borrowers across 25 locations and is connected with over 1.5 lakh MSMEs. It has Rs 1,600 crore of assets under management and has disbursed over USD 1 billion in loans, according to MD & CEO Arun Nayyar. NeoGrowth was founded by Dhruv Khaitan and Piyush Khaitan about a decade ago. The firm says new capital will be used for on-lending and entering new markets as it continues to scale its MSME lending operations. NeoGrowth is a non-banking finance company focused on micro, small and medium enterprises (MSMEs) in India. Its core offerings include digital payments-based lending, a modular product suite, analytics-based underwriting, and flexible repayment options to enable credit access for SMEs. The company has been in SME lending for nearly a decade and reports engagement with over 1 lakh customers and more than $1 billion disbursed across 25 locations in India. NeoGrowth recently secured $20 million from the U.S. International Development Finance Corporation (DFC) through an external commercial borrowing. The facility has a five-year tenor with a two-year moratorium on principal and will be used for onward lending to SME customers per ECB guidelines. Management says the capital will help extend credit, drive the firm’s mission to fund small businesses via the digital ecosystem, and create a positive impact on SMEs. NeoGrowth Credit Pvt Ltd is an Indian digital lender that underwrites loans for small and medium business owners by analyzing digital payments data generated from daily sales. Its lending platform features flexible, small, daily automated repayments tailored to merchant cash flows. Led by Managing Director PK Khaitan, the company focuses on expanding access to credit for small businesses. NeoGrowth intends to use the new funds to expand lending into India’s largest cities and other urban areas. The company is backed by investors including Omidyar Network, Khosla Impact, and Accion Frontier Inclusion Fund, alongside Aspada and Quona Capital. In conjunction with the round, LeapFrog’s Michael Fernandes joined NeoGrowth’s Board of Directors. NeoGrowth is a Mumbai-based fintech that provides credit to small and mid-sized retail enterprises. Using a data- and technology-driven platform, it offers flexible loan products secured against retailers' future credit and debit card sales and says it is the first company in India to offer this product. Loans are delivered via NeoGrowth's in-house digital lending platform, which the company cites for flexible repayment terms and minimal credit-history requirements. Management reports that more than three in four customers return for a new loan. NeoGrowth has now raised $35 million (INR 225 crores) in total and will use proceeds to build its loan book and invest in technology, brand, and distribution. Investors and company leadership have highlighted the firm's technology advantage and potential to expand financial inclusion among retailers.

Total raised

$148M

Funding rounds

5

Latest round

Debt Financing

Latest activity

Jan 2023