Mumbai-based MSME-focused digital lender NeoGrowth has raised $10 million from US-based global investment firm MicroVest Capital Management.
NeoGrowth plans to use the funds to provide loans 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.”
NeoGrowth, founded by Dhruv and Piyush Khaitan a decade ago, has provided loans totaling more than $1 billion to over 1,50,000 customers in 25 locations in India. To give SMEs access to credit, the company’s digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment options are crucial.
“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.”