Mumbai-based digital lender NeoGrowth has raised Rs 85 crore through a mix of equity and debt from Dutch development finance institution FMO and existing investor LeapFrog Investments. The fresh capital will help the company expand its loan book and provide more funding to small businesses across India.
According to Managing Director and CEO Arun Nayyar, nearly 70% of the latest funding round is equity. The fundraise comes as the lender looks to grow after facing a challenging credit environment last year.
Founded by Dhruv Khaitan and Piyush Khaitan
Founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth provides business loans to micro, small and medium enterprises (MSMEs), particularly small businesses operating offline.
Its loan products include both collateral-free and collateral-based financing, helping businesses access funds for their working capital and growth needs.
NeoGrowth previously raised Rs 300 crore ($36 million) in a Series D equity round in December 2022, led by FMO along with existing investors.
Targeting a Rs 3,000 Crore Loan Book
NeoGrowth plans to use the latest funding to expand its loan book to nearly Rs 3,000 crore before it requires another equity infusion.
The company uses technology and data analytics to assess borrowers based on their business performance, digital payment records, point of sale (POS) transactions and cash flows.
Instead of relying only on traditional collateral, this approach helps the lender evaluate small businesses that may have limited access to conventional bank loans.
The company also offers flexible repayment schedules, including daily, weekly, fortnightly and monthly options.
Serving Small Businesses Across India
NeoGrowth says it operates in more than 25 cities across India, serving over 80 business segments and more than one lakh businesses.
Its customers include small retailers, traders, manufacturers and service providers who need credit to manage daily operations or expand their businesses.
Digital lenders are increasingly using GST records, banking transactions and digital payment data to understand business cash flows and assess creditworthiness.
This approach is helping lenders reach MSMEs that may find it difficult to secure traditional financing.
Investor Interest in MSME Lending Continues
NeoGrowth's latest fundraise comes amid continued investor interest in technology-led lending platforms focused on small businesses.
In February 2026, Prayaan Capital raised Rs 110 crore in a Series A round led by Peak XV Partners to build its MSME lending platform.
In August 2026, GetVantage secured RS 63 crore in Series A1 funding to expand its cash-flow-based financing platform.
As more lenders use business data to assess borrowers, the MSME lending sector is seeing new opportunities in working capital finance, supply chain lending and embedded credit.
For NeoGrowth, the ₹85 crore fundraise will support its next phase of growth as it works towards a larger loan book and expands access to credit for India's small businesses.
Key Numbers
- Rs 85 crore - Latest funding from FMO and LeapFrog Investments
- Rs 3,000 crore - Target loan book
- 1 lakh+ businesses - Businesses served across India
Founders: Dhruv Khaitan and Piyush Khaitan
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