Funds to be used for onward lending to SMEs
NeoGrowth, India’s leading NBFC lender with a focus on Micro, Small & Medium Enterprises (MSMEs), today announced that it has secured funding from the United States International Development Finance Corporation (DFC) for USD 20 million via External Commercial Borrowing (ECB) route.
U.S. International Development Finance Corporation (DFC) is America’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. They invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets.
DFC investments adhere to high standards and respect the environment, human rights, and worker rights. DFC has a large investment portfolio in India, including in health, agriculture, renewable energy, climate solutions, and other critical sectors.
Arun Nayyar, Whole-time Director and CEO, said, “NeoGrowth is funding India’s small businesses by leveraging the digital ecosystem and this backing from DFC will help us drive that mission further while also creating a positive impact on SMEs. We will be using these funds to further extend credit to our customers to propel their business growth.”
James Polan, DFC’s Vice President of the Office of Development Credit, said, “DFC’s investment in NeoGrowth will increase access to capital for small businesses in India. NeoGrowth’s digital, flexible model enables it to reach more small businesses, promoting financial inclusion, economic growth, and development across the country.
This funding commitment is for 5 years with a 2-year moratorium on principal payment and will be utilised for onward lending to SME customers as per ECB guidelines.
With close to a decade in SME lending, NeoGrowth has engaged with 1 lac+ customers and disbursed over USD 1 billion in loans across 25 locations in India. The company’s digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment options are key to enabling credit access to SMEs. The company is continuously innovating to meet the financing needs of its customers for their various business needs.
NeoGrowth is a new-age digital lender, with a focus on Micro, Small, and Medium Enterprises (MSMEs). We are a Systemically Important, Non-Deposit taking Non- Banking Financial Company (NBFC-ND-SI), offering a wide range of products tailored to the dynamic needs of small businesses. Our data science and technology-led approach enable us to offer quick and hassle-free loans to MSMEs across 70+ segments across 25+ cities in India. We offer a unique daily repayment option to our customers with multi-channel repayment modes. We have served and engaged with 1,00,000+ businesses and supported them with their growth ambitions. We not only help small businesses grow but also drive financial inclusion making a positive social impact.
Founded by industry veterans, our Board of Directors comprises experts, who guide the leadership team toward our strategic goals. NeoGrowth is backed by renowned investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments.
For more details, www.neogrowth.in