Small businesses-focused fintech player NeoGrowth has raised Rs 300 crore from Dutch entrepreneurial development bank FMO along with existing investors.
Of the fresh equity capital, Rs 160 crore has been pumped in by the Dutch lender, NeoGrowth said in a statement on Thursday. The money will be used for on-lending and entering new markets, it added. NeoGrowth is also backed by Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments.
It has Rs 1,600 crore of assets under management and is connected with over 1.5 lakh MSMEs. So far, it has disbursed over USD 1 billion in loans, said MD & CEO Arun Nayyar. Peter Maila, co-chief investment officer at FMO, said NeoGrowth has been a debt client of FMO since 2017 and this is the first equity investment by FMO into the company. The equity allocation was not disclosed by the companies.
NeoGrowth offers loans to first-time entrepreneurs, women business owners, and underserved small businesses across 70 MSME segments spanning 25 locations. It was founded by Dhruv Khaitan and Piyush Khaitan a decade ago. FMO is a Dutch entrepreneurial development bank that supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. It focuses on agribusiness, food, water, energy, and financial institutions with a total committed portfolio of 12 billion euros spanning over 85 countries.
