MSME-focused digital lender NeoGrowth raises $10M from MicroVest
The company plans to use the funds to accelerate growth of MSMEs and facilitate financial inclusion.
Mumbai-based MSME-focused digital lender NeoGrowth has raised $10 million from US-based global investment firm MicroVest Capital Management.
With this funding, NeoGrowth plans to extend financing to small businesses across India.
“NeoGrowth is dedicated to funding India's small businesses by leveraging the digital payments ecosystem," said NeoGrowth MD and CEO Arun Nayyar. "This support from MicroVest will allow us to continue making a positive impact on SMEs. The funding will be used to help accelerate the growth of MSMEs and integrate them into the mainstream financing ecosystem.”
Founded by Dhruv Khaitan and Piyush Khaitan a decade ago, NeoGrowth has served over 1,50,000 customers, disbursing over $1 billion in loans across 25 locations in India. The company's digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment options are essential in providing credit access to SMEs.
“NeoGrowth's digitally-enabled lending model will allow the company to reach more small businesses across India with greater efficiency,” said MicroVest CEO Joshua Moraczewski.
He also said, “This expanded reach will help promote financial inclusion and economic growth for more underserved micro-entrepreneurs and SMEs. Through this loan, we are leveraging both of our organizations' synergies to achieve meaningful scale and contribute to the Sustainable Development Goals."
NeoGrowth is also backed by investors such as Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund–Quona Capital, IIFL Seed Ventures Fund, WestBridge, FMO, and Leapfrog Investments.
In December 2022, the digital lender secured Rs 160 crore from FMO, a Dutch entrepreneurial development bank. Existing investors also participated in the round, taking the total amount raised in the Series D round to about Rs 300 crore.
MicroVest specialises in allocating private debt capital to responsible microfinance and SME financial institutions that lend to un- or under-banked borrowers and small businesses in emerging and frontier markets. Since its founding in 2003, MicroVest has disbursed more than $1 billion to over 200 financial institutions in 60 emerging and frontier countries.
Edited by Kanishk Singh