Non-banking lender NeoGrowth, which focuses on micro, small and medium enterprises (MSMEs), has secured funding of $20 million from the United States International Development Finance Corporation (DFC) via the External Commercial Borrowing (ECB) route.
According to Arun Nayyar, director and CEO, “NeoGrowth is funding India’s small businesses by leveraging the digital ecosystem and this backing from DFC will help us drive that mission further, while creating a positive impact on SMEs. We will be using these funds to further extend credit to our customers to propel their business growth.
The funding is for five years with a two-year moratorium on principal payment and will be utilised for onward lending to SME customers as per ECB guidelines, said the company.
U.S. International Development Finance Corporation (DFC) is America’s development finance institution. “DFC’s investment in NeoGrowth will increase access to capital for small businesses in India. NeoGrowth’s digital, flexible model enables it to reach more small businesses, promoting financial inclusion, economic growth, and development across the country,” said James Polan, DFC’s vice president of the Office of Development Credit.
The NBFC is backed by investors such as Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments .The company says that it has engaged with more than one lakh customers and disbursed over $1 billion in loans across 25 locations in India.