Fintech start-up NeoGrowth raises $35 million to help small retailers in India access credit
Mumbai: Fintech start-up NeoGrowth has raised $35 million (about Rs.225 crore) of equity from IIFL Asset Management and existing investors, including Accion Frontier Inclusion Fund, managed by Quona Capital.
A significant portion of the equity was raised in the current round and other existing investors— Omidyar Network, Aspada Investments and Khosla Impact—also participated in the funding, IIFL said in a statement.
NeoGrowth will use the funds to help small retailers, including qualified borrowers with little or no credit history, access credit in the country, it said. Using a data and technology-driven approach, NeoGrowth provides small and mid-sized retail enterprises with flexible, innovative loan products that are secured against retailers’ future credit card and debit sales.
“The additional investment by all existing investors in this round also is a demonstration of their continued excitement. We will use this money to build our loan book, and to invest in technology, brand, and distribution,” Dhruv Khaitan, founder and chairman of NeoGrowth, said.