NeoGrowth Secures ₹85 Crore to Enhance Digital Lending
MSME-focused lending platform NeoGrowth has raised ₹85 crore ($8.8 million) in a mix of debt and equity. The funding round was led by Dutch development bank FMO with participation from LeapFrog Investments.
Indian MSME lending platform NeoGrowth has secured ₹85 crore (approximately $8.8 million) in a funding round comprising both debt and equity. The round was led by Dutch development bank FMO, with participation from LeapFrog Investments.
The capital infusion is earmarked for scaling NeoGrowth's digital lending capabilities, expanding its market presence across India, and improving credit access for micro, small, and medium-sized enterprises. Founded in 2012, NeoGrowth offers loans to MSMEs in over 75 business segments, focusing on smaller businesses that often face challenges accessing formal credit.
NeoGrowth employs proprietary AI for underwriting, portfolio monitoring, and risk management, offering collateral-free loans ranging from ₹5 lakh to ₹75 lakh (approximately $6,000 to $90,000). The company's lending model features daily repayment options and multiple repayment channels.
The company manages assets under management (AUM) of nearly ₹2,000 crore (approximately $240 million) and has disbursed over ₹16,000 crore ($1.9 billion) in loans to date. This funding comes as digital lenders increasingly target the MSME sector in India, which is a significant employment provider but often underserved by traditional banking.
NeoGrowth operates in a growing market of digital lenders addressing the credit gap for MSMEs. Other new-age NBFCs are also leveraging technology to provide financial solutions, indicating a maturing fintech and non-banking financial sector in India.