Fintech startup NeoGrowth has raised $35 million (about Rs 225 crore) of equity from India Infoline (IIFL) Asset Management and existing investors, including Accion Frontier Inclusion Fund, managed by Quona Capital.
A significant portion of the equity was raised in the current round and other existing investors Omidyar Network, Aspada Investments and Khosla Impact also participated in the funding, IIFL said in a statement here.
NeoGrowth will use the funds to help small retailers, including qualified borrowers with little or no credit history, access credit in the country, it said. Using a data and technology-driven approach, NeoGrowth provides small and mid-sized retail enterprises with flexible, innovative loan products that are secured against retailers’ future credit card and debit sales.
The additional investment by all existing investors in this round also is a demonstration of their continued excitement. We will use this money to build our loan book, and to invest in technology, brand, and distribution, Dhruv Khaitan, Founder & Chairman of NeoGrowth, said.
NeoGrowth loan funds typically support retailers’ expansion, renovation, one-time equipment purchases, or large seasonal inventory purchases.
Borrowers have access to the financial technology company’s digital approach managed through NeoGrowth’s in- house technology platform, flexible repayment terms, and minimum credit history requirements. More than three in four NeoGrowth customers return for a new loan, it claimed.
NeoGrowth offers hassle-free SME business loan, small business loans, business funding for retailers and online sellers in India. The company focusses on meeting the financial needs of small businesses that are selling goods and services to consumers. It offers business financing to small and medium-sized retailers that sell apparel, consumer durables and electronic items, footwear and accessories, handicrafts, gifts, food and grocery items, and optical goods, as well as to restaurants, beauty salons, hotels, gymnasiums, and health diagnostic centres.