Fintech Firm NeoGrowth Secures Rs 300 Cr From Dutch Lender FMO, Existing Investors

NeoGrowth, a Bengaluru-based MSME-focused digital lender, has raised Rs 300 crore from Dutch entrepreneurial development bank FMO, along with its existing investors.

Of the fresh equity capital, Rs 160 crore has been pumped in by the Dutch lender, and the fund will be used for on-lending and entering new markets, NeoGrowth said in a statement on Thursday.

The fintech is also backed by Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion FundQuona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments. The company, which has Rs 1,600 crore of assets under management, is connected with over 1.5 lakh MSMEs across the country.

Arun Nayyar, Managing Director and CEO of NeoGrowth, said that the company has already disbursed over USD 1 billion in loans.

NeoGrowth has been a debt client of FMO since 2017 and this is the first equity investment by FMO into the company, said Peter Maila, Co-chief Investment Officer at FMO. 

However, the equity allocation was not disclosed by the companies.

Founded by Dhruv Khaitan and Piyush Khaitan in 2011-12, NeoGrowth offers loans to first-time entrepreneurs, women business owners, and underserved small businesses across 70 MSME segments spanning 25 locations.

Meanwhile, the Dutch entrepreneurial development bank FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. With a total committed portfolio of Euros 12 billion spanning over 85 countries, the bank’s focuses on agribusiness, food, water, energy, and financial institutions.