Recognised NBFC and Fintech startup Neogrowth raises $10 Millions as debt from MicroVest Capital Management for its business Expansion
Date of announcement: 17 January 2023
Company legal Name: Neogrowth Credit Private Limited
Founders: Mr. Dhruv Khaitan and Piyush Khaitan. Both are serial entrepreneurs and were founders of Venture Infotek, India’s leading payment processing company until divestiture.
Funding status till date: USD 188.9 mn
Type of funding: Debt
Valuation: Not disclosed
Investors: Microvest Capital Management. Prior to this, company is backed by company backed by Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund Quona Capital, IIFL Seed Ventures Fund, WestBridge Capital, and Leapfrog Investments.
Company’s business: NeoGrowth is a new-age digital lender, registered as NBFC providing business loans to Micro, Small, and Medium Enterprises (MSMEs) upto 1.5 crs offering wide range of customised loans products since 2014 viz. retail loans and supply chain financing. Company leverages technology and data science-led approach to offer instant and hassle-free loans. It is present across 80+ segments in 25+ cities in India with various repayment options to customers. Until now, company has served and engaged with 1,00,000+ businesses and supported them with their growth ambitions with loans amounting to ~USD 1 billion.
Apart from this, it also provides credit facilities to retailers who wish to avail loan against their property, even with the loan amount being more than the value of the property with products based on liquidity, ITR, financials, and bank statements of the enterprises.
Company’s View: Funding will allow us to continue making a positive impact on MSMEs and will be used to help accelerate their growth and integrate them into the mainstream financing ecosystem, said managing director Arun Nayyar said.
Investor's View: Through this loan, we are leveraging both of our organisations' synergies to achieve meaningful scale and contribute to the sustainable development goals," said Microvest’s CEO Joshua Moraczewski in an interview to e-daily.
Purpose of Funding: Expand its India’s geographical footprint while aiming to secure more growth capital
Competitors: Currently, India’s fintech market is fulled with heavy competition including platforms like BharatPe, paisabazaar, rupaya, lazypay etc. Considering this competition, existing footprints and winter for fundings, Company should be able to expand its footprints however, technology is a major factor considering Web3.0 as a focus in India’s Digital Space.