NeoGrowth Credit, a Mumbai based non banking financial company has raised a funding of Rs 108 crore from IIFL Wealth Management’s Seed Venture Fund, other investors include Khosla Impact, Aspada and Omidyar Network.
It was founded in 2010 by Piyush Khaitan and Dhruv Khaitan. A non banking financial company is registered with RBI provides short term business loans for business needs to Indian merchants and has provided around 4000 loans till now.
Piyush Khaitan Managing director of NeoGrowth said,
“We are delighted with the loan repayment performance, our provisions are less than 2%, a number we have maintained consistently month-on-month. We find that small businesses do not get easy access to credit, but once you trust them and lend, they repay the trust in equal measure.”
It lends around Rs 2 lakh to Rs 1.5 crore to merchants and retailers who are selling on online marketplaces getting a majority of their revenues via debit and credit card sales. It provides loans for a period of 6 to 24 months with no fixed monthly installments.
It has also partnered with Flipkart and other companies to launch their financial assistance programme for its merchants. It provides their clients business financing. It has provided around Rs 600 crore worth of loans till now and it further plans to double the amount in the next 5 to 6 years.
NeoGrowth had raised $2.7 Million from Omidyar Network and $1.6 million from Aspada Investment Company. Earlier Capital Float raised $25 million it its Series B round of funding and Lendingkart raised $32 million in its Series B round of funding.