NeoGrowth raises $10 million from global investment firm MicroVest to expand access to financing for India’s SMEs
NeoGrowth, an MSME-focused digital lender in India, today announced that it has secured a $10 million investment from MicroVest Capital Management, a US-based global investment firm. The investment will help NeoGrowth extend financing to small businesses across India while helping the company get required growth capital.
As a pioneering impact investor, MicroVest has a 19-year history of investing in microfinance institutions (MFIs) and small and medium enterprise (SME) financial institutions that align their interests with those of the borrowers and communities they serve. Many of the financial institutions that MicroVest invests in, such as NeoGrowth, often serve as the first provider of formal credit to underserved microentrepreneurs and small businesses. These investments help facilitate financial inclusion, deepen financial sector development, increase productivity and local economic growth, promote gender equality, reduce poverty, and contribute to the UN Sustainable Development Goals.
NeoGrowth’s Managing Director and CEO Arun Nayyar stated: “NeoGrowth is dedicated to funding India’s small businesses by leveraging the digital payments ecosystem. This support from MicroVest will allow us to continue making a positive impact on SMEs. The funding will be used to help accelerate the growth of MSMEs and integrate them into the mainstream financing ecosystem.”
“NeoGrowth’s digitally-enabled lending model will allow the company to reach more small businesses across India with greater efficiency,” said MicroVest CEO Joshua Moraczewski. “This expanded reach will help promote financial inclusion and economic growth for more underserved microentrepreneurs and SMEs. Through this loan, we are leveraging both of our organizations’ synergies to achieve meaningful scale and contribute to the Sustainable Development Goals.”
NeoGrowth has nearly a decade of experience in SME lending and has served over 150,000 customers, disbursing over $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 essential in providing credit access to SMEs. NeoGrowth is consistently innovating to meet the financing needs of its customers for their various business needs.