NeoGrowth Credit Pvt. Ltd. Company Profile

Background

NeoGrowth Credit Pvt. Ltd., established in 2013 and headquartered in Mumbai, India, is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). The company specializes in providing short-term business loans to small and medium-sized enterprises (SMEs) by leveraging digital payment data for underwriting. NeoGrowth's mission is to fund small businesses by utilizing the digital ecosystem, thereby fostering growth and creating a positive impact. The company has disbursed over USD 1 billion in loans, serving more than 25,000 businesses across 25+ Indian cities.

Key Strategic Focus

NeoGrowth focuses on offering tailored financial products to SMEs, particularly those that accept digital payments. By analyzing merchants' point-of-sale (POS) data, the company assesses creditworthiness and provides loans without requiring collateral. This approach enables quick loan disbursement, often within three days, and offers flexible repayment options, including a unique daily repayment model. NeoGrowth serves a diverse range of industries, including retail, hospitality, and e-commerce, addressing the dynamic needs of small businesses.

Financials and Funding

NeoGrowth has secured significant funding to support its operations and expansion:

• January 2018: Raised Rs 300 crore from LeapFrog Investments, along with existing investors Aspada Investment Company and Quona Capital.

• December 2022: Received $36.4 million in funding.

• January 2023: Secured a $10 million investment from MicroVest Capital Management.

• May 2024: Raised Rs 300 crore from Dutch entrepreneurial development bank FMO and existing investors.

These funds are intended to enhance NeoGrowth's technological capabilities, expand its product offerings, and strengthen its presence across India.

Pipeline Development

NeoGrowth continually develops and refines its financial products to meet the evolving needs of SMEs. The company has introduced offerings such as the NeoCash Insta Loan, designed to provide quick and hassle-free loans to small and medium businesses. By leveraging data analytics and machine learning, NeoGrowth aims to streamline the loan approval process and offer customized financial solutions.

Technological Platform and Innovation

NeoGrowth differentiates itself through its proprietary technology platform that integrates data analytics and machine learning algorithms to assess creditworthiness based on digital payment data. This innovative approach allows for:

• Automated Loan Approval: Utilizing sophisticated underwriting scorecards to expedite loan processing.

• Customer Self-Service: Providing a fully integrated marketing and lead generation engine for seamless customer interaction.

• Flexible Repayment Models: Offering multi-channel repayment modes, including a unique daily repayment option.

These technological advancements enable NeoGrowth to offer quick, hassle-free loans tailored to the dynamic needs of SMEs.

Leadership Team

NeoGrowth's leadership comprises experienced professionals dedicated to driving the company's mission:

• Arun Nayyar: Chief Executive Officer and Board Member. Appointed to the Board of Directors in January 2022, Arun brings extensive experience in financial services and strategic leadership.

• Deepak Goswami: Chief Financial Officer. Deepak oversees the company's financial strategy and operations, ensuring fiscal responsibility and growth.

• Dhruv Khaitan and Piyush Khaitan: Founders and Promoters. The Khaitan brothers have a rich entrepreneurial background, having previously founded and managed Venture Infotek, a pioneer in the Indian e-payments industry.

Leadership Changes

In January 2022, Arun Nayyar, who was serving as the Chief Executive Officer, was appointed to NeoGrowth's Board of Directors, reflecting the company's commitment to strong governance and strategic leadership.

Competitor Profile

Market Insights and Dynamics

The SME lending market in India is characterized by a growing demand for quick and flexible financing solutions. With a significant portion of SMEs lacking access to traditional credit, fintech companies like NeoGrowth play a crucial role in bridging this gap by leveraging technology and data analytics.

Competitor Analysis

NeoGrowth operates in a competitive landscape with several notable players:

• Capital Float: An online platform providing working capital finance to SMEs, focusing on quick loan disbursement and flexible terms.

• ZipLoan: A technology-driven online lending platform offering small business loans with minimal documentation and fast processing.

• Innoviti: A fintech company specializing in payment solutions and lending services for businesses, integrating technology to enhance financial transactions.

• Empruntis: An online platform enabling users to compare financial services, including loans and insurance products.

These competitors emphasize technology-driven solutions to address the financing needs of SMEs, similar to NeoGrowth's approach.

Strategic Collaborations and Partnerships

NeoGrowth has engaged in strategic partnerships to enhance its market position and service offerings:

• Flipkart Partnership: Collaborated with Flipkart to launch a financial assistance program for merchants, providing tailored financing solutions to e-commerce sellers.