The small business-focused fintech Neogrowth has raised $10 million in debt funding from US-based impact investor Microvest Funding Management. With the aid of a Rs 160 crore equity investment from Dutch lender FMO, the company last month received $300 million from several investors in debt and equity.
Neogrowth will be able to finance small enterprises with the help of the investment, according to the company, which is backed by Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund, Quona Capital, IIFL Seed Ventures Fund, WestBridge Capital, and Leapfrog Investments.
Microvest is an impact investor with over 19 years of experience funding small and medium-sized businesses and microfinance organisations. As an asset manager, it specialises in providing private loan capital to lenders who focus on SME lending and responsible microfinance. Microvest has given more than $1 billion to more than 200 financial institutions in 60 emerging and frontier nations since its founding in 2003.
According to Neogrowth managing director Arun Nayyar, the most recent funding from Microvest “will allow us to continue making a positive impact on MSMEs” and would be utilised to aid in accelerating their growth and integrating them into the mainstream financial ecosystem.
Microvest CEO Joshua Moraczewski remarked, “Through this loan, we are leveraging both of our organisations’ synergies to attain meaningful scale and contribute to the sustainable development goals.”
Dhruv and Piyush Khaitan founded Neogrowth, which has more than 1,50,000 clients and has disbursed over $1 billion in loans across 25 locations. In terms of SME lending, Neogrowth has ten years of experience. Neogrowth offers loans in 70 MSME categories to first-time business owners, women business owners, and underserved small enterprises.