NeoGrowth Credit Pvt Ltd is a NBFC registered with RBI, providing short term business loans to merchants against their card/online sales. NeoGrowth aims to provide vital business capital to entrepreneurs with innovative financial loan products & flexible repayment mechanism. NeoGrowth’s mission is to make loans easy, convenient & hassle-free for small businesses.
As per the latest update from the startup, NeoGrowth Credit, a specialised lender to small and medium sized retailers, has raised Rs108 crore in a new round of funding from IIFL Wealth Management’s Seed Venture Fund besides existing investors, which include Omidyar Network, Khosla Impact and Aspada.
NeoGrowth, which has been set up by serial entrepreneurs Dhruv Khaitan and Piyush Khaitan, has also roped in product and engineering talent from Flipkart and Ola as it looks to strengthen its technology.
Piyush Khaitan, MD at NeoGrowth while talking about the development mentioned,
“We are delighted with the loan repayment performance, our provisions are less than 2%, a number we have maintained consistently month-on-month. We find that small businesses do not get easy access to credit, but once you trust them and lend, they repay the trust in equal measure,”
NeoGrowth is a technology-enabled lending business that provides unsecured loans to small retailers in all major Indian Cities including Mumbai, Delhi and Bangalore, repaid by future card receivables, e-commerce sales and other non-cash payments. More than half of the loans made by NeoGrowth are less than INR 1 million each and greater than 80% of loans have been given to Proprietorship and Partnership firms. NeoGrowth combines new payment datasets, traditional scoring, dynamic repayment & automated collections to identify and serve these credit-worthy merchants. Merchants are not required to pay fixed monthly instalments, but instead make automatic repayments as a portion of their sales made with electronic card payments at the Point of Sale (card settlement). The company also offers NeoCash Online, designed exclusively for online sellers on e-commerce marketplaces and retailers selling online through independent portals.