NeoGrowth, a Mumbai-based digital lender focussing on medium to small enterprises, has raised $36.2m in a Series D equity round.
According to a report from VC Circle, the round was led by Dutch development bank FMO as well as existing investors.
NeoGrowth is also backed by investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund Quona Capital, IIFL Seed Ventures Fund, WestBridge and Leapfrog Investments.
The company provides small businesses with loans through the analysis and underwriting of daily digital payments sales data to assess risk. The platform helps to finance companies that might not have access to traditional banks.
NeoGrowth application can be competed online and allows lending products for both online sellers and in-person retailers.
Its lending activities also focus on the financial inclusion of first-time entrepreneurs, women business owners, and underserved small businesses. The company offers loans to companies across a multitude of segments and has its presence at around 25 locations in India.
NeoGrowth reportedly has an AUM (assets under management) of Rs 1,600 crore, and claims to have connected with over 1,50,000 MSMEs since its inception and disbursed around $1bn in loans.
Earlier this year, NeoGrowth raised $20m from the United States International Development Finance Corporation (DFC) via the external commercial borrowing (ECB) route.
NeoGrowth said it will use the funding to scale geographical expansion and consolidation along with development in its digitally enabled products, according to a statement.
Arun Nayyar, managing director & chief executive officer at NeoGrowth, said, ?We believe that this fresh funding from FMO will enable us to accelerate our growth by using our business model.p>
Earlier this year, Open banking-powered lender Koyo raised ?100m in debt and ?5m in its Series A round. Launched in 2020, Koyo was built on the idea that access to competitively priced financial products and affordable credit is taken for granted and many do not have access to it.
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