NeoGrowth lends over Rs 650 crore to women-run MSMEs in FY2024

NeoGrowth, a digital lender focusing on Micro, Small, and Medium Enterprises (MSMEs) in India, has made significant strides in supporting women entrepreneurs.

In the financial year 2024, the company disbursed over Rs 650 crore in loans to women-run MSMEs.

The figure marks a 34% increase from the previous fiscal year, highlighting the growing demand and NeoGrowth's commitment to financial inclusion for women entrepreneurs.

The amount represents 23% of NeoGrowth’s total loan disbursements, which amounted to Rs 2,863 crore for FY 2024.

Impact on women-owned MSMEs

According to the NeoGrowth Impact Report 2024, over 3,600 women-owned MSMEs benefited from these business loans.

The company claims that it served a customer base of more than 16,000 in the fiscal year, with women-run businesses playing a crucial role in the company’s broader mission of fostering an inclusive economy. 

Sustainable development goals

NeoGrowth’s business activities align with six of the United Nations Sustainable Development Goals (SDGs), reflecting its broader commitment to contributing to societal and environmental progress.

The company has particularly focused on key SDGs, including Gender Equality, Industry, Innovation and Infrastructure, and Decent Work and Economic Growth.

NeoGrowth’s strategy is designed to ensure that its credit solutions support the growth of India’s MSMEs and also contribute to broader societal and environmental goals.

This holistic approach ensures that every loan extended has a positive ripple effect, leading to job creation, improved credit scores, and enhanced female entrepreneurship.

Expansion in tier-II cities and emerging businesses

The company also made significant strides in supporting MSMEs in Tier-II cities, disbursing close to Rs 835 crore in these regions. Moreover, 41% of NeoGrowth's total loans were advanced to emerging small businesses that have been in operation for five years or less. 

The focus on newer businesses and under-served regions highlights NeoGrowth's dedication to reaching entrepreneurs who are often overlooked by traditional financial institutions. 

Arun Nayyar, Managing Director & CEO of NeoGrowth, emphasized the company's mission, stating, "At NeoGrowth, our mission is to create a sustainable, inclusive, and purpose-driven ecosystem for MSMEs in India... Our unwavering commitment to empowering first-generation entrepreneurs, supporting women-led businesses, and fostering financial inclusion contributes towards a vibrant and inclusive economy."

NeoGrowth claims to have a presence in over 25 cities and cater to more than 75 MSME industry segments. Since its inception, the firm has disbursed over $1.4 billion.