NeoGrowth, an NBFC that specialises in lending to MSMEs, stated that it had secured funding from the United States International Development Finance Corporation (DFC) for USD 20 million under the External Commercial Borrowing (ECB) route.
According to ECB guidelines, this funding commitment, which has a 5-year term with a 2-year moratorium on principal payments, will be used for subsequent lending to SME customers.
Arun Nayyar, Whole-time Director and CEO, said, “NeoGrowth is funding India’s small businesses by leveraging the digital ecosystem, and this backing from DFC will help us drive that mission further while also creating a positive impact on SMEs. We will be using these funds to further extend credit to our customers to propel their business growth.”
The United States development finance institution, International Development Finance Corporation (DFC), collaborates with the private sector to finance technology, healthcare, energy, and critical infrastructure solutions.
DFC also offers financing to small firms and female entrepreneurs to support the development of new markets and the creation of jobs.
James Polan, DFC’s Vice President of the Office of Development Credit, said, “DFC’s investment in NeoGrowth will increase access to capital for small businesses in India. NeoGrowth’s digital, flexible model enables it to reach more small businesses, promoting financial inclusion, economic growth, and development across the country.
