NeoGrowth Secures $8.77 Mn to Expand MSME Lending

Managing director and CEO Arun Nayyar says that equity makes up 70 percent of this latest funding round. NeoGrowth is also planning to raise about ₹500 crore – around $51.57 million – in equity year to support its growth plans.

Funding Details

The latest ₹85 crore funding round includes money from FMO and from existing investor LeapFrog Investments. NeoGrowth has not shared how much each investor gave or the exact split between equity and debt.

NeoGrowth had already raised ₹300 crore – about $30.94 million – in a Series D equity round in December 2022. In that round FMO led the investment along with existing investors.

How Will NeoGrowth Use the Funding?

NeoGrowth plans to use the capital to expand its lending operations and to grow its loan book to almost ₹3,000 crore. NeoGrowth expects this funding to help it lend to businesses before it raises more equity.

The planned ₹500 crore equity raise year is meant to give NeoGrowth more capital for business expansion.

About NeoGrowth

Founded in 2011 by Dhruv Khaitan and Piyush Khaitan NeoGrowth gives business loans to micro, small and medium enterprises across India. NeoGrowth’s customers include retailers, restaurants, cafés and other offline businesses.

NeoGrowth offers both collateral‑free and collateral‑based loans. NeoGrowth uses technology, digital payment records, point‑of‑sale transactions and business cash flows to evaluate borrowers and their ability to repay.

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