Friday, March 31, 2023

MSME-focused fintech startup NeoGrowth raises $10M led by Microvest

Mumbai-based MSME-focused fintech startup NeoGrowth has raised $10 million in a debt funding round from US-based global investment firm MicroVest Capital Management.

In mid-December 2022, the startup closed its Series D funding round after raising Rs 160 crore from the Dutch entrepreneurial development bank FMO.

Founded by Dhruv Khaitan and Piyush Khaitan, NeoGrowth offers technology-led, quick, and hassle-free loans to MSMEs across 70+ segments, from modest neighbourhood kirana stores to upcoming eateries, to chic salon operators in over 25 locations in India.

The fintech startup plans to use the raised funding to accelerate the growth of MSMEs and facilitate financial inclusion. It claims to have served over 150,000 customers, disbursing over $1 billion in loans.

“NeoGrowth is dedicated to funding India’s small businesses by using the digital payments ecosystem. The funding will be used to help the growth of MSMEs and integrate them into the mainstream financing ecosystem,” said Arun Nayyar, Managing Director & chief executive at NeoGrowth.

“NeoGrowth’s digitally-enabled lending model will allow the company to reach more small businesses across India with greater efficiency,” said MicroVest CEO Joshua Moraczewski.

“This expanded reach will help promote financial inclusion and economic growth for more underserved micro-entrepreneurs and SMEs. Through this loan, we are leveraging both of our organizations’ synergies to achieve meaningful scale and contribute to the Sustainable Development Goals,” said Joshua.

MicroVest is an asset manager that specializes in allocating private debt capital to responsible financial institutions that lend to unbanked or underbanked borrowers or small businesses in emerging and frontier markets.

The decade-old startup previously raised funds from Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, FMO, and Leapfrog Investments.

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