NeoGrowth Raises ₹85 Cr To Expand Digital Lending Capabilities

MSME-focused lending platform NeoGrowth has secured ₹85 Cr ($8.8 Mn) in a mix of debt and equity round led by Dutch development bank FMO, with participation from LeapFrog Investments.

The startup is planning to use the fresh capital to scale its digital lending capabilities, deepen market presence across India and expand access to credit for MSMEs. 

Founded in 2012 by brothers Dhruv and Piyush Khaitan, NeoGrowth offers loans to MSMEs across more than 75 business segments, targeting small businesses that often have difficulty accessing credit. Its lending model also includes daily repayment options and multiple repayment channels.

The fresh capital will aid the NBFC in scaling and supporting more MSMEs with timely and accessible formal credit, “enabling more small business owners to pursue their growth aspirations through our financially inclusive lending solutions,” managing director and CEO Arun Nayyar said.

The Mumbai-based startup uses its proprietary AI initiatives to strengthen underwriting, portfolio monitoring and risk management. 

It offers collateral-free loans in the range of ₹5-75 Lakh, through products including NeoCash, NeoCash Insta, NeoCash Express, which cater to different business scales and segments. 

NeoGrowth manages assets under management (AUM) of nearly ₹2,000 Cr and has engaged with more than 4 Lakh businesses. It has disbursed over ₹16,000 Cr in loans to date.

During FY26, NeoGrowth added 17 branches, taking its total branch network to 46 locations in India.

NeoGrowth last raised ₹300 Cr in equity funding 2022, with FMO footing over half the round. Its existing investors also include Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund–Quona Capital and 360 ONE Asset. The lender has also raised nearly ₹2,000 Cr in debt from 18 lenders between April 2025 and July 2026. 

The fresh round comes as digital lenders increase focus on MSMEs, which often have difficulty in raising formal credit despite being the country’s second largest employer.

New-age NBFCs like Indifi Capital, Techfino, Lendingkart, FlexiLoans, Aye Finance, among others, are leveraging technology to address this issue and provide credit to MSMEs. 

As the ecosystem evolves, many NBFCs are also taking the public markets route to raise capital for their lending operations. In the past year, those that have hit the bourses include Aye Finance, Kissht, Moneyview, Tata Capital and Northern Arc, among others. 

Meanwhile, those in the IPO pipeline include Fibe, InCred, Avanse and Muthoot, reflecting broadening maturity of the sector, with total NBFC AUM expected to reach ₹50 Lakh Cr by FY27 end. 

Notably, NBFC credit accounted for nearly 26% of the country’s GDP in 2026, as they step in to expand credit access for those not covered by traditional banking. 

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