CONNECT WITH US
Funding Tracker

Funding Tracker

MSME-focused digital lender NeoGrowth raises Rs 85 Cr from FMO, LeapFrog

Entrackr logo

Published on

Add as a preferred source on Google
MSME-focused digital lender NeoGrowth raises Rs 85 Cr from FMO, LeapFrog

NeoGrowth, an MSME-focused digital lender, has raised Rs 85 crore through a mix of equity and debt from Dutch development finance institution FMO and existing investor LeapFrog Investments.

The Mumbai-based company had previously raised Rs 300 crore ($36 million) in a Series D equity round in December 2022, led by FMO along with existing investors.

The latest proceeds will be used to grow its loan book to nearly Rs 3,000 crore before the company requires another equity infusion, NeoGrowth said in a press release.

Co-founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth provides business loans tailored to the needs of small businesses. Its offerings include both collateral-free and collateral-based loans for micro, small and medium enterprises (MSMEs).

The company uses technology and data analytics to assess borrowers based on digital payment data, point-of-sale (POS) transactions and cash flows rather than relying solely on traditional collateral. It also offers flexible repayment schedules, with daily, weekly, fortnightly and monthly collection options.

NeoGrowth claims to operate in more than 25 cities across India, serving over 80 business segments and more than 1 lakh businesses.

Digital lenders are increasingly using GST records, banking transactions, digital payment trails and other business data to assess creditworthiness and extend loans to kirana stores, manufacturers, traders, distributors and small service providers.

The segment has attracted investor interest as lenders target underserved MSMEs through supply chain financing and embedded credit solutions.

Recent funding activity reflects this trend. In February 2026, Prayaan Capital raised Rs 110 crore in a Series A round led by Peak XV Partners to build its technology-led MSME lending platform.


Source link
Related Topics:Funding Tracker

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.