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NeoGrowth raises Rs 85 Cr led by FMO

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NeoGrowth raises Rs 85 Cr led by FMO

MSME-focused digital lender NeoGrowth has raised Rs 85 crore investment led by FMO, the Dutch entrepreneurial development bank, with participation from LeapFrog Investments.

A statement said, the investment will support NeoGrowth's next phase of growth as it looks to expand access to credit for MSMEs, strengthen its digital lending capabilities and deepen its market presence.

Between April 2025 and July 2026, the company raised close to Rs 2,000 crore in debt funding from 18 lenders. The other investors in NeoGrowth include Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund–Quona Capital, 360 ONE Asset, FMO, and LeapFrog Investments.

NeoGrowth was founded by Dhruv Khaitan and Piyush Khaitan, and manages assets under management (AUM) close to Rs 2,000 crore and disbursed more than Rs 16,000 crore. In FY26, NeoGrowth expanded its distribution footprint, adding 17 new branches, taking its presence to 46 locations.

“This investment strengthens our ability to support more MSMEs with timely and accessible formal credit as we scale our business,” said NeoGrowth Managing Director & CEO Arun Nayyar on the funding raised.

NeoGrowth said it continues to enhance its underwriting, portfolio monitoring, and risk management framework through proprietary AI-powered initiatives.

"FMO has partnered with NeoGrowth since 2017 and invested $20 million in equity in 2022. We're pleased to further strengthen that partnership through this investment, which reflects our continued confidence in NeoGrowth's team, business model, and ability to responsibly scale its impact,” said Peter Byrde, Director, Private Equity at FMO.

“Expanding access to finance for underserved entrepreneurs is a key part of FMO's strategy to support inclusive growth and reduce inequalities,” Byrde added.


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