NeoGrowth Credit, a lending startup and an NBFC that focuses on SMEs, has raised Rs 300 crore of equity funding from LeapFrog Investments.
The fundraising also saw participation from existing investors, including Aspada Investment and Quona Capital through Accion Frontier Inclusion Fund, reports ET.
Avendus Capital, a financial service company, acted as an advisor for the credit deal including Omidyar Network and Khosla Impact.
The company will use the capital to provide loans to underserved merchants. LeapFrog Investments partner Michael Fernandes, who has joined the NeoGrowth Credit board said that the capital infusion will help the lending startup build its loan book — and the merchant borrowers, which in turn inspires growth and job creations.
Started in 2013, NeoGrowth provides loans to merchants who accept card or digital payments. The company set up by Dhruv Khaitan and Piyush Khaitan is financed by Omidyar Network, Aspada Investment Company, Accion Frontier Inclusion Fund and others, reads NeoGrowth Credit website.
The company has its presence in Mumbai, Bangalore, Delhi, Chennai,Chandigarh, Ahmedabad, Lucknow, Pune, and other states as well. The lending platform also plans to expand to other markets in the country.
NeoGrowth competes with companies like CreditMate, LendingKart, MoneyTap, and LoanMeet, among others.
Last year, the platform had raised about $43 million from a clutch of investors including Accion Frontier and Aspada. In the same year, another lending platform IndiaLends mopped up about $5 million from DSG Consumer Partners and American Express Ventures among others.
Lending kart also raised Rs 162 crore between August and September this year in multiple tranches from IFMR Capital, Capital First, Tata Capital Financial Services (TCFSl) and Manappuram Finance.
The company also plans to double its loan book every year for the next 4-5 year.