NeoGrowth Credit Pvt. Ltd. | ₹85 Cr / ~$8.8M (Equity + Debt)

Founders: Arun Kumar Nayyar, Piyush Khaitan

Founded: 2011

HQ: Mumbai

Sector: Fintech / MSME Lending

What they do

→ Digital NBFC offering business loans to MSMEs, including retailers, restaurants and cafes

→ Provides both collateral-free and collateral-based loans

→ Underwrites using digital payment records, POS transactions and business cash flows, not just collateral

→ Offers daily, weekly, fortnightly and monthly repayment options

→ Operates in 25+ cities across 80+ business segments, serving 1 lakh+ businesses

The Funding

→ Raised ₹85 Cr (~$8.8M) through a mix of equity and debt

→ Investors: FMO - Dutch entrepreneurial development bank and existing investor LeapFrog Investments

→ Nearly 70% of the round is equity, per CEO Arun Nayyar

→ Follows a ₹300 Cr ($36M) Series D in December 2022, led by FMO

Why it matters

→ Funds will take the loan book to nearly ₹3,000 Cr before the next equity raise

→ Plans a larger equity round of around ₹500 Cr next year

→ FMO, a lender to NeoGrowth since 2017, is now backing it with equity and debt

→ Reflects growing use of payment and cash-flow data to lend to MSMEs with limited access to traditional credit

Can data-led underwriting finally close India's MSME credit gap?