NeoGrowth bags Rs 300 crore

NEW DELHI: NeoGrowth Credit, digital lender to small and medium enterprises, has raised Rs 300 crore of equity capital from investors led by LeapFrog Investments. Existing investors in the company, Aspada Investment Company and Quona Capital, also participated in the fundraising, through Accion Frontier Inclusion Fund.

“India is at an inflexion point of moving towards a lesscash economy and massive digitisation of transaction level data,” said Michael Fernandes, partner, LeapFrog Investments, who has joined the NeoGrowth Credit board after the transaction.

“By providing loans to underserved merchants based on financial profiles created through real-time transaction data, NeoGrowth unlocks credit that is tailored to their business, which in turn inspires growth and job creation,” said Fernandes.


Avendus Capital was the advisor to NeoGrowth Credit for the deal.

NeoGrowth’s other backers include Omidyar Network and Khosla Impact. The nonbanking financial company has built a proprietary technology platform to offer unsecured loans to merchants who accept card or other digital payments.