Mumbai-based MSME-focused fintech startup NeoGrowth has raised Rs 160 crore in a Series D funding round led by Dutch entrepreneurial development bank FMO.
The round, which takes the total amount raised to Rs 300 crore, also saw participation from other existing investors. The startup plans to use the raised capital to expand into new markets, strengthen its foothold in existing ones, and accelerate innovation.
Founded by Dhruv Khaitan and Piyush Khaitan, The fintech startup 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.
Since its inception, NeoGrowth has connected with over 1.5 lakh MSMEs and has disbursed over $1 billion in loans.
Arun Nayyar, Managing Director & CEO, NeoGrowth, said, “We at NeoGrowth, are delighted with this association with FMO and deeply appreciate the responsibility that has been placed on us. We believe that this fresh funding from FMO will enable us to accelerate our growth by leveraging our robust business model. 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.”
According to the company's statement, NeoGrowth has been profitable for the last four consecutive quarters, fueled by a product suite, data-driven underwriting model, deep customer connection, strong data science capabilities, and analytical models across the value chain.
“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,” said Peter Maila, Co-Chief Investment Officer, FMO.
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