NeoGrowth, an MSME-focused digital lender, has raised Rs 160 crore (approximately $19.3 million) in a Series D round from Dutch development bank FMO. Existing investors were also involved in the funding round.

According to a statement, the Bengaluru-based fintech startup will use the funds to scale geographical expansion and consolidation, as well as development in its digitally enabled products.

With an AUM (assets under management) of Rs 1,600 crore, NeoGrowth claims to have connected with over 1,50,000 MSMEs and disbursed approximately $1 billion in loans since its inception. For the last four quarters, the company has been profitable.

The ten-year-old startup makes loans to small businesses based on the underwriting of their digital transactions and cash flow to determine the health of the company. It also focuses on the financial inclusion of first-time entrepreneurs, women business owners, and underserved small businesses through its lending activities. It provides loans to MSMEs in a variety of segments and has a presence in approximately 25 locations across India.

The FMO is a Dutch entrepreneurial development bank that focuses on agribusiness, food and water, energy, and financial institutions. They have a total committed portfolio of 12 billion euros and a presence in more than 85 countries. NeoGrowth has been an FMO debt client since 2017, according to Peter Maila, FMO’s co-chief investment officer.

In November 2022, NeoGrowth secured $20 million (around Rs 160 crore) from the United States International Development Finance Corporation (DFC) via the external commercial borrowing (ECB) route.

Categories: Other News