NeoGrowth, an MSME ( micro, small and medium enterprises) focused lender, raised Rs 300 crore in a Series D funding round led by FMO, The Dutch Entrepreneurial Development Bank. Existing investors also participated in the investment round.
The company plans to utilise the fresh capital for market expansions and digital product development. Additionally, it wants to bolster its footprints in the existing markets.
Founded by Piyush Khaitan, NeoGrowth is known for offering financial assistance to small businesses. Backed by a clutch of investors including Omidyar Network, Lightrock, and Khosla Impact, it has disbursed $1 billion in loans since its inception.
The company claims to be connected with more than 1,50,000 MSMEs and has an AUM (asset under management) of Rs 1,600 crore. It has also disbursed $1 billion in loans since its inception.
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Speaking on the latest development, Arun Nayyar, managing director (MD) and CEO of NeoGrowth, said, “We are confident that we will enable more small business owners that have historically been denied formal credit to fuel their growth aspirations with our financially inclusive lending solutions.”
Addressing their decision to invest in NeoGrowth, Peter Maila, the co-chief investment officer at FMO, said, “NeoGrowth has been a debt client of FMO’s since 2017, and with FMO’s ability to provide funding across the capital structure, we are happy to further strengthen our support as a shareholder.”
“We invested in NeoGrowth, not only because they are a propellent of financial inclusion by serving an underserved SME community through their unique digital products and underwriting capabilities, but also because they fit perfectly well within our ambitions of reducing inequalities in a key market such as India,” he added.
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