New Delhi, Oct. 9 -- NeoGrowth, which focusses on providing loans to micro, small, and medium-sized enterprises, has raised Rs 85 crore (around $8.8 million) in a round led by existing investors the Dutch entrepreneurial development bank FMO and LeapFrog Investments.
The non-bank lender will utilise these funds to expand its loan book, strengthen its digital-lending capabilities and deepen its market presence, according to a press note.
NeoGrowth said it continues to enhance its underwriting, portfolio monitoring and risk-management framework through proprietary AI-powered initiatives.
"This investment strengthens our ability to support more MSMEs with timely and accessible formal credit as we scale our business," Arun Nayyar, managing director and CEO, NeoGrowth said in the note.
NeoGrowth was founded by Dhruv Khaitan and Piyush Khaitan in 2012, after they sold transaction-processing firm Venture Infotek. The firm counts PE firms LeapFrog Investments and WestBridge Capital, as well as impact investors Omidyar Network, Lightrock, Khosla Impact Fund, Accion and IIFL Seed Ventures as its backers.
The company said it has expanded its distribution footprint in the financial year ended March 2026, and has added 17 new branches. Currently, the company is present in 46 locations, and manages an loan book of nearly Rs 2,000 crore.
In December 2022, the company mopped up Rs 300 crore in a Series D round led by FMO and existing investors.
Also read: Bottomline: PE-backed NeoGrowth pumps the brakes on growth to improve profitability
Published by HT Digital Content Services with permission from VC Circle.