MSME lender NeoGrowth raised Rs 85 crore from FMO and LeapFrog Investments. The company got this funding to grow its loan book. Managing director Arun Nayyar said, "The round is nearly 70% equity." NeoGrowth plans to use these funds to support small businesses like retailers and cafes across the country.
The fundraise will allow NeoGrowth to grow its loan book to nearly Rs 3,000 crore before it needs another equity infusion, Nayyar said, adding that the company plans to raise a larger equity round of roughly Rs 500 crore next year.
MSME lender NeoGrowth has raised Rs 85 crore in a mix of equity and debt from the Dutch development finance institution FMO and existing investor LeapFrog Investments, as it looks to expand its loan book following a challenging credit environment last year."The round is nearly 70% equity," managing director and CEO Arun Nayyar told ET. The company, which lends primarily to small, offline businesses such as retailers, restaurants, and cafes,