{
  "id": 13082672,
  "title": "NeoGrowth Raises ₹85 Cr To Expand Digital Lending Capabilities",
  "url": "https://urgent.news/2026/10/09/neogrowth-raises-85-cr-to-expand-digital-lending-capabilities",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-09T08:47:54.000Z",
  "source": {
    "name": "Inc42",
    "slug": "inc42",
    "url": "https://inc42.com/buzz/neogrowth-raises-%e2%82%b985-cr-to-expand-digital-lending-capabilities/"
  },
  "original_language": "en",
  "account": "NeoGrowth, an MSME-focused lending platform, has raised ₹85 Cr ($8.8 Mn) through a debt and equity round led by Dutch development bank FMO and LeapFrog Investments. The startup aims to leverage the capital to bolster its digital lending capabilities, broaden its market presence in India, and enhance credit access for MSMEs. Established in 2012 by Dhruv and Piyush Khaitan, NeoGrowth provides loans to over 75 business segments, focusing on small businesses that typically struggle to obtain credit. Their digital lending model includes daily repayment options and multiple payment channels.\n\nThe fresh funding will enable NeoGrowth to scale its operations, support more MSMEs, and facilitate timely, accessible formal credit solutions. Managing Director and CEO Arun Nayyar highlighted that the company's proprietary AI tools strengthen underwriting, portfolio monitoring, and risk management. NeoGrowth offers collateral-free loans ranging from ₹5-75 Lakh through products like NeoCash, NeoCash Insta, and NeoCash Express, catering to various business sizes and segments. The firm manages assets worth approximately ₹2,000 Cr and has serviced over 4 Lakh businesses, disbursing loans worth more than ₹16,000 Cr since its inception.\n\nIn FY26, NeoGrowth expanded its branch network to 46 locations across India by adding 17 new branches. This round of funding follows a previous ₹300 Cr equity injection in 2022, with FMO contributing more than half of that round. Additional investors include Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund–Quona Capital, and 360 ONE Asset. NeoGrowth has also raised around ₹2,000 Cr in debt from 18 lenders between April 2025 and July 2026. The current funding follows a trend among digital lenders focusing on MSMEs, which often face challenges in obtaining formal credit despite being the second-largest employers in the country. Other new-age NBFCs like Indifi Capital, Techfino, Lendingkart, FlexiLoans, and Aye Finance are also utilizing technology to address this issue and provide credit to MSMEs. Several NBFCs have recently listed on the public markets, including Aye Finance, Kissht, Moneyview, Tata Capital, and Northern Arc, while others like Fibe, InCred, Avanse, and Muthoot are in the pipeline, indicating the sector's growing maturity, with total NBFC assets under management expected to reach ₹50 Lakh Cr by the end of FY27. NBFC credit currently accounts for nearly 26% of India's GDP, expanding credit access for those not served by traditional banking institutions.",
  "summary": "MSME-focused lending platform NeoGrowth has secured ₹85 Cr ($8.8 Mn) in a mix of debt and equity round led by…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}