NeoGrowth receives an exclusive coverage in MINT – National edition, April 11, 2019

NeoGrowth receives an exclusive coverage in MINT - National edition under the column Click Moment'. This column in Mint has been regularly publishing the Eureka or Click Moment stories of several founders and leaders across all industries. The story under the column 'Click Moment' captured the journey of NeoGrowth narrated by Mr. Piyush Khaitan (PK), Founder & MD, NeoGrowth, portraying how it is grown to be one of the leading lending players in India with a strong focus on creating a positive social impact.

Excerpt from the article:
NeoGrowth is a technology-enabled lending business providing loans to underserved micro, small and medium enterprises (MSMEs) on the basis of their digital spends through point-of-sale machines. My brother, Dhruv Khaitan, and I founded a digital payments processing firm, Venture Infotek, in the mid-1990s. It soon became India's largest transaction processing firm and operated merchant acquiring, card processing, loyalty programmes and government benefit programmes on behalf of Indian banks and large retailers. It is during these years that we realized retailers' pain points in terms of accessing finance. More than half of these retailers, though creditworthy, were denied finance on the basis of traditional underwriting methods. That was the click moment for us. We realized that there is a huge credit gap we can bridge by leveraging our learnings in digital payments and transactions. We divested Venture Infotek in 2010 and founded NeoGrowth in 2011-12 to provide MSME retailers easy access to credit. NeoGrowth has pioneered an innovative lending model in India, which operates at the convergence of three ecosystems-lending, urban retail, and digital payments.

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NeoGrowth's CEO, Mr. Arun Nayyar featured as one of the Top 100 Fintech for SDG (Sustainable Development Goals) Influencers

NeoGrowth's CEO, Mr. Arun Nayyar, featured as one of the Top 100 Fintech for SDG (Sustainable Development Goals) Influencers who are leveraging the power of fintech and blockchain technology to create a positive impact on the future. This List was presented by LATTICE80 in collaboration with FinTech Good. LATTICE80 is a global Fintech hub with more than 11,000 startups and 200,000 professionals on their database. They are committed to supporting and enabling fintech and blockchain startups that promote social impact causes by leveraging on their network of global partners.

Click here to view the list

NeoGrowth receives an exclusive coverage in People Matters (India's leading high-end multimedia HR Magazine)

NeoGrowth receives exclusive coverage in People Matters with a story titled 'Here's how Fintech startups in India are empowering women' authored by Mr. Piyush Khaitan (PK), Founder & MD, NeoGrowth.

Excerpt from the article:
With the financial service industry undergoing revolutionary changes in recent times, here is a severe need to unlock all innovations, creativity, and human talent to cater to massive growth opportunities.For the banking and financial services industry to reach its full potential, the pressing concern of gender imbalance within the sector needs to be duly confronted. By addressing the gender disparities to empower women, the fintech segment has begun harnessing this immense talent reserve to reach optimal financial results. In the last few years, fintech startups have made a significant impact, not just by redefining the financial services sector but also by being an active facilitator of the nation's growth. If the ecosystem continues being as supportive, fintech has the potential to substantially boost economic development as well as women empowerment in India.

NeoGrowth organizes Blood donation camp for a noble cause

Donating blood is a great way of giving back to the community and NeoGrowth did it the right way by organizing blood donation camps at several ofoffice locations. The campaign was done in association with Think Foundation and various blood banks. The motive behind this blood donation drive was to save life of people suffering from thalassemia. This campaign witnessed a great response with around 90 employees of NeoGrowth donating blood

An Update From NeoGrowth- March,19

NeoGrowth receives an exclusive coverage in The Indian Express, March 26, 2019

Excerpt from the article:
The digital lending space in the country is abuzz with a bevy of financial technology (or fintech) companies - or peer to peer (P2P) lenders, as categorized by the Reserve Bank of India - entering the segment targeting the unmet demand from Indian micro, small and medium enterprises (MSMEs), as well as consumers, for credit. From a small  segment a few years ago, India has now about 338 lending startups, according to the India Fintech Report 2019 by global fintech insights platform Medici and Zone Startups

Piyush Khaitan (PK), founder and MD, NeoGrowth Credit Pvt. Ltd, said, "The MSME lending landscape is evolving and is set to be disrupted by digital lenders, backed by continuous thrust by Government of India towards digitization through demonetization, Unified Payments Interface launch, India Stack and the introduction of GST." There is a shift from predominantly "feet on street" agent-based business model to a more digital approach, he said.

click here to read the complete article

NeoGrowth participated at FICCI's PICUP Fintech Summit, March 14, 2019

NeoGrowth participated at FICCI's PICUP Fintech 2019 Summit at Hotel Trident in Mumbai on 14th March 2019. Mr. Piyush Khaitan (PK), Founder & MD, NeoGrowth, addressed the audience in a panel discussion on the topic 'Defining the future of finance with digital innovators'.

NeoGrowth receives coverage in Fortune India magazine in an exclusive story on its Investment Partner Omidyar Network, titled 'Doing Good is the Bottom Line'.

Excerpt from the article:
OMIDYAR NETWORK INDIA made its first investment in India in 2008 and has, thus far, invested close to $300 million across equity investments (70% of the corpus) and grants (the balance 30%). As of December 2018, Omidyar Network India had 76 active investments across six impact areas that it has identified-digital identity, education, emerging technology, nancial inclusion, governance and citizen engagement, and property rights. "There was a clear alignment with our mission and our common purpose of social impact, which also met the criteria that Omidyar was looking for in a fintech investee," says Piyush Khaitan (PK), founder and managing director of NeoGrowth. Over the years, NeoGrowth has raised around 500 crore from a clutch of investors, including Omidyar Network India, Aspada Investment Company, Khosla Impact, Accion Frontier Investment Fund-Quona Capital, IIFL Seed Ventures Fund, and LeapFrog Investments. Speaking of NeoGrowth's experience with Omidyar Network India as an investor, Khaitan says it has been "fantastic". "They provide strategic advice and direction. Moreover,
they aren't interfering as investors and leave it to the management to run the business. They have the wisdom and maturity to share their point of view but not force it down the company.”

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NeoGrowth receives an exclusive coverage in TJinste, a premier HR magazine by TOI group, in a story titled 'Performance appraisals: What India Inc. plans to offer to its employees'.

Excerpt from the article:
A TimesJobs survey of more than 3,000 HR professionals was conducted recently to understand the performance appraisal process in their organisations, and how happy were the employees with the appraisals and rewards. The survey analysis by Sukriti Yaduwanshi reveals that as per 71% of employees, organisations still fall short of a watertight approach in identifying the true potential of employees and rewarding them accordingly.
Piyush Khaitan (PK), Founder & MD, NeoGrowth commented, "At NeoGrowth, we have built a performance-driven culture. We don't try to force-fit a bell-curve, especially for smaller units and functions. We are performance & meritocracy driven organisation where we reward the top 5% to 10% performers with reasonably high increments. Exceptional performers are promoted in the very first year of joining or given promotions in consecutive years. At NeoGrowth, promotion leads to a change in the role & expansion of the span of control.”

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NeoGrowth undertakes Women-centric initiatives on the occasion of International Women's Day

Diversity is at the core of NeoGrowth’s inclusive work culture agenda. NeoGrowth celebrated the International Women’s Day by undertaking several women-centric initiatives around the occasion. This included a Breast Cancer Awareness Program organized for all Female employees of NeoGrowth by cancer surgeon from Apollo Hospitals and Prevention of Sexual Harassment (PoSH) Awareness Session conducted for Pan India Locations by Divya Momaya, a Practising Company Secretary with rich experience in the field. To add on to the excitement, all female employees received a surprise cake delivered to their home apart from a cake cutting ceremony at all office locations.

NeoGrowth Awarded for ‘Best Learning Strategy Of The Year’

NeoGrowth is awarded for ‘Best Learning Strategy Of The Year’ at the 3rd edition of Future of L&D Summit & Awards 2019 organized by UBS forums in mumbai, for implementing new and innovative learning strategy, Employee Onboarding and Development program.

This highlights NeoGrowth’s endeavor to work on enhancing the strength of its employees by providing them with ample avenues and opportunities to learn new skills, thereby enabling them to excel at work.

NeoGrowth, Paisabazaar.com strengthen their collaboration for SME loans; Business grows by 100% during Oct-Dec 2018 over previous quarter

NeoGrowth, the pioneer in digital lending for SMEs in India and Paisabazaar.com, India's largest online marketplace for financial products, partnered to provide swipe-machine-based or POS based loans to small and medium scale enterprises last year.
With this alliance, NeoGrowth and Paisabazaar.com have increased their POS-based loan business by 100% during Oct- Dec 2018 period over the previous quarter.

The disbursals include Chennai-based 'BG Aadhithya Collection', which received a POS-based loan of Rs 40 lakh from NeoGrowth, within four days of application on Paisabazaar.com, making it the largest POS-based loan disbursal sourced through Paisabazaar till date. Many such loan cases have been logged in and disbursed with this alliance, ensuring quick & efficient loan processing.

This is a significant milestone marking the importance of digitalization in financial services industry, further enhancing the loan accessibility for MSME sector, NeoGrowth and Paisabazaar.com said in a joint statement today.

"I am extremely delighted with this remarkable achievement in such a short span of time nd thank the Paisabazaar.com team for their valuable contribution. We surely have a long way to go together and look forward to a growing and fruitful alliance," said Piyush Khaitan (PK),  Founder & Managing Director, NeoGrowth.

As a market leader, Paisabazaar.com's objective is to make borrowing simple and convenient for India. NeoGrowth has been a great enabler in helping us provide our self-employed consumers with easy access to credit. One of our key focus areas this year will be to further boost lending to the MSME sector through our partnership," said Naveen Kukreja, CEO & Co-Founder, Paisabazaar.com.

Click Here for the complete article

NeoGrowth participates at Asia Financial Institutions Forum 2019 in Bangkok

NeoGrowth participated as a Gold sponsor at the Asia Financial Institutions Forum 2019 organized by FMO at Hotel Amari Watergate in Bangkok on 22nd & 23rd January 2018. AFIForum 2019 is the inaugural edition of an annual gathering that aims to become the
largest forum for the impact community and the financial sector in Asia. AFIForum has the ambition to foster dialogue between investors and the financial sector to catalyse debt raising, equity investments and technical assistance programs.

NeoGrowth's CEO, Mr. Arun Nayyar addressed the audience in a panel discussion on the topic 'Fintech and innovative approaches to take away from India's growth market', wherein he highlighted on India pioneering the most innovative strategies to advance access to finance and addressing the missing middle. NeoGrowth also marked its presence at the forum with a networking booth and overall event branding.

NeoGrowth Participates In Prominent Industry Events

NeoGrowth participates at Inclusive Finance India Summit in New Delhi

NeoGrowth participated at the Inclusive Finance India Summit organized by Access Assist at Hotel Ashok in New Delhi on 11th & 12th December 2018. Inclusive Finance India is a global policy platform on Financial Inclusion setup with the objective of enabling cross-pollination of best practices and breakthroughs, specifically to influence India's Financial Inclusion strategy and campaign. The Summit invites participation from the Ministry of Finance, the Reserve Bank of India, Banks, payment gateways, multilateral/bilateral agencies, private sector and other stakeholders from within and outside the country to share experiences and delve and deep dive into critical issues.

NeoGrowth's CEO, Mr. Arun Nayyar addressed the audience in a panel discussion on the topic 'Way ahead for Inclusive Lending: Tech-Driven, Evolving Products?', wherein he highlighted on NeoGrowth's offerings stating, "Our prime focus is on consumer facing SMEs and we have a deep understanding of our client's business. We fund businesses which we understand the best by integrating technology to simplify the overall process." NeoGrowth also marked its presence at the summit with a marketing booth at the IFI's Trade Fair and overall event branding.

Inclusive Financial Meet
Inclusive Financial Meet

NeoGrowth partnered at 'Be A Supermarketwala' event in Mumbai

NeoGrowth proudly partnered as a Gold Sponsor at 'Be A Supermarketwala' event in mumbai organized by Trust for Retailers and Retail Associates of India (TRRAIN). The event witnessed a gathering of over 200 traditional retailers from across India and mainly featured the book launch of 'Be A Supermarketwala' by Indian retail sector professional, Damodar Mall and focused on the transformation project of being a Supermarketwala from a Kirana King. The event also recognized and awarded the existing supermarketwalas who are acting as role models for new-age retailers. It involved presence of eminent industry experts namely B.S. Nagesh, Ajay Gupta, S.C. Misra and many others.

NeoGrowth's CEO, Mr. Arun Nayyar addressed the retailers present at the event making them aware about NeoGrowth's business friendly loans and guiding them on the innovative funding solutions available in the market today offering easy access and flexible repayments. NeoGrowth also marked its presence at the summit with a marketing booth and overall event branding.

NeoGrowth is honoured to be listed amongst the ’10 Best Startups in Finance – 2018’ by SiliconIndia

The fintech segment of the Indian business industry is seeing the face of development at a rapid pace. As India is gradually turning out to be the hotbed of fintech innovation, SiliconIndia Startup city Magazine, which projects the stories of flourishing entrepreneurs, outstanding technologists and accomplished CEOs, has come up with a list of “10 Best Start-ups in Finance”, featuring prominent Startups that are seen majorly as enablers of change. The list has undergone strict scrutiny by a panel of judges which include CEOs, CXOs, CIOs, analysts and the Startupcity editorial team.

Excerpt from the article:
The Union Budget 2018-19 gave a special emphasis on the MSME sector providing a huge boost to the players present in the industry, especially the Digital Lending companies. This demonstrates the government's approval to provide adequate finance to MSME sector, complementing the efforts of the industry and thus creating a positive impact. Mumbai based NeoGrowth Credit Pvt. Ltd. works actively towards providing quick and easy access to credit to the under-served MSME segment. The company through its technology-enabled processing caters to provide loans to the merchants against their future digital sales and unlocks credit that is tailored to the merchant's business requirement. "Our loans come with unique features like the daily repayment model which is focused on customer centricity. This feature helps merchants to plan their cash flows better, especially during slow and slack seasons. These loans are processed much quicker than a typical loan, giving merchants' fast access to cash when needed," speaks Piyush Khaitan (PK), Co-Founder & Managing Director, NeoGrowth.

A Game Changer
As an NBFC registered with RBI, NeoGrowth is known to drive digitalization in the SME lending space by pioneering the concept of POS based funding. Its business model operates at the convergence of lending, urban retail and digital payments, on a platform of technology and innovation. "When working closely with retailers, we realized their
problems in terms of accessing finance. More than 50 percent of these retailers with adequate credit-worthiness were denied finance based on traditional underwriting methods. We intend to fill this gap at NeoGrowth," informs PK.

The Success Saga
Established in 2013, NeoGrowth has lent its hand to merchants and businesses across the SME and MSME sectors for developing innovative products and unconventional methodologies. So far, it has partnered with over 13,000 businesses and has 21 branches in various cities spread across the country. Additionally, it has scaled up disbursements from INR 9 Crore in 2012-13 to INR 1,350 Crore in 2017-18 and has a target of INR 3,300 Crore for the year 2019-20.

Click here for the article

 

NeoGrowth conducts an extensive Social Impact Study report on the performance of its MSME customers

  • 139 merchants across seven cities interviewed, different business segments and ownership models included.
  • So far NeoGrowth has disbursed over Rs.35 Billion in loans under its social impact lending model

NeoGrowth recently commissioned ASCo, India's leading transaction advisory firm, to audit the social impact that NeoGrowth loans have had on the lives of retailers in terms of business growth, women empowerment, job creation and fostering entrepreneurship. So far NeoGrowth has disbursed over Rs. 35 Billion in loans under its social impact lending model. NeoGrowth has already generated a lot of positive response by facilitating credit assistance to a massive under-served segment of Indian entrepreneurs across the country.

The independent report was prepared after interviewing 139 customers of NeoGrowth across seven cities including Hyderabad, NCR Delhi, Mumbai, Kolkata, Lucknow, Bangalore and Vijayawada. Only borrowers with lending activity between April 2017 and March 2018 were selected, and the sample size was carefully developed to include different industries, constitution of enterprises, varying loan amounts and gender

Commenting on the report, Piyush Khaitan (PK), MD & Co-founder, NeoGrowth said, "NeoGrowth has been conducting these studies every year to understand the social impact generated on-ground from the business activities of its customers. Since traditional underwriting methods in India exclude more than 50% of creditworthy SMEs due to insufficient credit history or lack of collaterals, a substantial amount of the country's potential business and economic output remains untapped. This annual social impact report prepared by an independent third party has further underlined NeoGrowth's commitment in boosting entrepreneurship and job creation, thereby enforcing our mission of creating a positive social impact."

NeoGrowth's operational innovations have seen them partner with more than 13,000 business merchants across 21 cities to grow and diversify their enterprises.

Click here to read the Complete Social Impact Report

NeoGrowth’s Founder & MD, Piyush Khaitan (PK), shares his views on the news around current liquidity crunch for NBFCs.

Liquidity crisis: Crucial to give well-run NBFCs their due; it isn’t right to paint all of them with the same brush

The growing uneasiness about liquidity fears is affecting the Non-Banking Financial Companies (NBFCs) space, bringing back painful memories. As NBFCs grapple with commercial paper maturity worth over Rs 1 lakh crore in November with big chunks slated to start from Monday onwards, the current crisis-like scenario is being compared to parallels in past cycles that occurred in 2009 and 2013.

The Indian government and Reserve Bank of India (RBI) are taking swift measures to shore up liquidity and ease crunch fears. But, in this confusion, all NBFCs irrespective of their balance sheet strength and businesses are being painted with the same brush. What started due to default on debt obligations by a single entity is now being given the unfair perception of an ‘industry-wide’ problem, pushing up markets-based borrowing costs and affecting liquidity strength for everyone in the system. It is important for stakeholders to separate the wheat from the chaff.

To read further click here 

NeoGrowth crosses Assets of Rs. 1,000 crore.

A Momentous Occasion Marking Yet Another Milestone Achievement.

NeoGrowth achieves a new milestone of crossing Asset Under Management (AUM), of Rs. 1,000 crore today.

Speaking on this occasion, Dhruv Khaitan (DK), Founder & Chairman of NeoGrowth said, "It gives us immense pleasure to cross the milestone of Rs. 1,000 crore in AUM. This landmark is a reflection of the faith and confidence our customers and stake holders have bestowed in the company. We've had a great journey having scaled up disbursements from Rs. 9 crore in FY 13 to Rs. 1,350 crore in FY 18. We have set a target of Rs. 3,300 crore for the next financial year."

Businesses have benefitted from NeoGrowth's unique tech & touch model, augmented by the in-house technology platform and smart analytics of the digital spends data. NeoGrowth's tailor-made approach using digital payments helps merchants to plan their cash flows better and also boosts entrepreneurship and job creation, thereby enforcing its mission of creating a positive impact in society.

 

NeoGrowth has partnered with over 13,000 businesses assisting them in their business growth and has 21 branches in various cities spread across the country. While doing so, the company has also remained focused on creating a positive social impact by lending to women entrepreneurs and first-time borrowers, and also creating jobs and improving the credit profile of its customers.

“We will continue with our expansion plans into these markets and keep innovating to come up with better solutions to help the SME segment in the best possible manner. In the next 5 years we aim to cross Rs. 7,000 crore in AUM; in other words, build a billion-dollar balance sheet”, DK added.

 

Additional References

  1. NeoGrowth crosses 1000 crore in Assets Under Management by Business World
  2. NeoGrowth hits Rs 1000 crore of AUM by Economic Times

 

Fintech and social impact investing in India [interview with Oikocredit]

What does NeoGrowth do?

NeoGrowth is a technology-enabled lending business that provides loans to under-served micro, small and medium enterprises (MSMEs) in 21 cities across India.

We pioneered a model in India that uses data from credit and debit card sales to determine the credit worthiness of small and medium retailers and to provide loans against future sales.

What is unique about NeoGrowth?

Using technology our loans can be quickly approved and require minimum documentation or credit histories. All of which is appreciated by our clients, most of whom would struggle to get loans elsewhere.

Our loans are also very flexible and we allow the customer to pay back their loan on a daily basis. The process is much easier for our clients.

In terms of social impact we focus on generating fair sustainable employment through lending. We do this by making sure that our clients work with diligent fair labour organisations to ensure that health and labour standards are being met. Empowering female entrepreneurs is also a key focus area for us.

Why did NeoGrowth decide to partner with Oikocredit?

What attracted us to work with Oikocredit was their triple bottom line approach, and namely their focus on social impact investing.

We were also impressed by the team Maanaveeya [the Indian subsidiary of Oikocredit]. We came in as the new kid on the block, and Gouri and his team really supported us with their knowledge and expertise.

Oikocredit has a really good understanding of what is going on in India. Because of which they are able to provide solid insight and guidance to their partners.

Click here to read the full interview.