NeoGrowth, an MSME-focused digital lender, has raised Rs 300 crore ($36 million) in a Series D equity round led by FMO, a Dutch entrepreneurial development bank, along with existing investors.
The company intends to use the proceeds to expand into new markets, strengthen its foothold in existing ones, and accelerate innovation in products.
Founded by Dhruv Khaitan and Piyush Khaitan, NeoGrowth is an MSME-focused new-age lender that offers a wide range of products tailored to the dynamic needs of small businesses.
The company claims to offer loans to MSMEs across more than 70 segments covering over 25 locations in India. It has disbursed over $1 billion in loans to MSMEs so far.
NeoGrowth’s disbursements were affected by the Covid-19 pandemic. In August 2020, the platform’s disbursals came down to Rs 3.1 crore which saw a revival with Rs 145 crore disbursal in March 2021. The business, however, was again impacted during the second wave of the pandemic as its loan disbursal fell to Rs 5.9 crore in May 2021.
According to the company, it will target 30-40% loan growth during FY23.
NeoGrowth has been backed by Omidyar Network, Lightrock, Khosla Impact, Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments, among others.
It competes with companies like CreditMate, LendingKart, MoneyTap, and LoanMeet, among others.
