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.

Mr. Piyush Khaitan, MD & Co-Founder, NeoGrowth, honored to be amongst the 30 Most Creative leaders of 2018 by Mirror Review.

 

Mirror Review is a Magazine Company with a mission to depict not only the achievements of companies and
entrepreneurs but also to shed light on the innovations they are carrying to disrupt the current market scenario.
Excerpt from the article:
“According to Piyush Khaitan, creativity is a phenomena that evolves along with the environment around it. Belonging to an entrepreneurial family, Piyush and his brother, Dhruv Khaitan (Chairman of NeoGrowth) began their entrepreneurship in a sector that was both challenging and taxing. However, this did not stop him from going after a precarious sector. Piyush was enticed by the  idea of the business which would provide the small & medium enterprises (SMEs) with access to finance, based on digital payments. He wanted to actively participate in this e-payment sector with creative and distinctive ideas, thereby serving this ecosystem.”

Piyush’s voyage to entrepreneurship began with a digital payments processing firm, Venture Infotek, which he, along with his brother, later sold to a European multinational company. Piyush had also founded DEI, India’s largest secure card personalization bureau, which merged into Venture Infotek in 2007. He has worked closely with the Card Networks, RBI and IBA in framing policies and giving direction to the card payments industry in India. Piyush was also the Founder, Chairman of the ‘ePayments Focus Group’ of the Smart Card Forum of India (SCAFI) from 2000 to 2005.

It was during these building years, where working closely with retailers, both Dhruv & Piyush recognized the stumbling blocks in terms of accessing finance. More than 50% of these retailers, though credit-worthy, were denied finance based on traditional underwriting methods. It was this gap that Dhruv & Piyush aimed to bridge with NeoGrowth. Piyush acknowledges his journey saying, “The journey so far has been adventurous & eventful and we are getting closer to our objective day by day. Our tech & touch model along with our customer centric business philosophy are the key attributes which have helped us to emerge as the market leaders.”

NeoGrowth with Billdesk is serving an easy way for loan repayment.
NeoGrowth has now partnered with Billdesk; the most trusted payment gateway, to enable our customers repay their loan in a hassle-free manner. This feature is now live and available on NeoGrowth’s website under the tab ‘Pay Now’.
Key Benefits from this feature:
• Easiest, fastest and safest way to repay loan
• Easy accessibility to receive all bills, review and make payments
• Convenient to use
• Gain complete control of all payment
• Realtime update of payment in NeoGrowth account.

NeoGrowth Partners with PaisaBaazar

NeoGrowth, the pioneer in digital lending for SMEs in India, and Paisabazaar.com, India’s largest online marketplace for lending products, have partnered to provide swipe-machine-based or POSbased loans to small and medium scale enterprises.

NeoGrowth and Paisabazaar.com have disbursed POS-based loans worth Rs 6 crore to merchants from 10 cities in over a couple of months. This includes Bangalore-based ‘Oye Restaurants’, which received a POS-based loan of Rs 35 lakh from NeoGrowth, within four days of application on Paisabazaar.com, making it the largest  POS-based loan disbursal sourced through Paisabazaar.

NeoGrowth's POS-based loans, available on the Paisabazaar platform, involve analytical underwriting on the basis of digital spends taking place through card swipe machines at the borrower's outlet, along with other alternate data. These loans also allow daily repayment facility, instead of monthly EMIs.

Announcement from Mr. D. K. Khaitan (Chairman) and Mr. P. K. Khaitan (Managing Director): Arun Nayyar appointed as Chief Executive Officer, NeoGrowth

Mr. Arun Nayyar6 years ago we founded NeoGrowth, and it has been a remarkable journey for us. We have built a substantial business around a unique business model, with differentiated features that others are still trying to emulate. Over these years, we have created our proprietary technology, processes and product features. As the book grew, we added requisite governance, management talent and attracted high quality investors & debt providers. All of this has positioned us very well for the next stage of our trajectory of rapid growth.

As NeoGrowth steps into the next stage of growth, we need to augment the leadership team with a person having in-depth knowledge & experience of leading a large NBFC. We have therefore decided to bring in a person who understands the nuances of a new wave lending business & has built a successful NBFC from scratch as Chief Executive Officer.

We are happy to inform you all that we have appointed Arun Nayyar as “Chief Executive Officer” and he has joined us today. Arun has over 20 years of working experience & successfully managed a variety of assignments in this space.

Arun joins us from Edelweiss Retail Finance Ltd where he had been the ‘Chief Executive Officer & Business Head – SME Lending’. He had the overall responsibility of setting up the SME lending business within the retail finance vertical. He joined Edelweiss group around 7 years back and was the first employee of the SME Lending business. Over these years, he successfully built, from scratch, a differentiated and robust SME portfolio, spread across 100 locations.

Prior to Edelweiss, Arun was with Citibank for 8 years in Commercial Banking, and Risk Head for the consumer & commercial portfolio. He had joined Citibank as a Relationship Manager and was elevated as Regional Business head in two years. Later he became the Risk Head and was responsible for portfolios including micro-finance and the unsecured retail assets portfolio.

He has also worked for 2 years at CRISIL early on in his career. Arun is a Chartered Accountant and also worked for AF Ferguson & Co as Audit trainee for three years.

We both look forward to working closely with Arun, and the team, in building NeoGrowth into a much larger and significant presence in the NBFC landscape in India. We will continue to have a direct and significant role in this journey. D. K. will continue as Chairman, and P. K. as Managing Director of NeoGrowth.

All of us at NeoGrowth extend a very warm welcome to Arun.

D. K. Khaitan                              P. K. Khaitan

Chairman                                     Managing Director

NeoGrowth aims to cross Rs 7000 Cr in AUM in the next 5 years – Excerpts from MD & CEO Piyush Khaitan’s interview with BW Businessworld.

BW-logoBW Businessworld in one of India’s prominent business magazines. Founded in 1981, the magazine specialises in analysis of businesses, stock market, finance and economy news.

What Was The Rationale Behind Launching NeoGrowth? What Market Gaps Are You Trying To Fill?

Prior to NeoGrowth, we had a digital payments processing business – Venture Infotek, which we later sold to a European multinational in 2010. It is during these years, where working closely with retailers, we realized their pain points in terms of accessing finance. More than 50% of these retailers, though credit-worthy, were denied finance based on traditional underwriting methods.

It is this gap that we aim to bridge with NeoGrowth. Our tech & touch model along with our Customer Centric business philosophy are the key attributes which have helped us emerge as market leaders.

How has your experience been with providing unsecured loans to small merchants? What’s your delinquency rate?

We understood early on the importance of understanding consumer behaviour. We took that as a guiding light for our product & technology development and that is evident from our product features like the daily repayment facility instead of a monthly EMI.  Also, NeoGrowth focusses heavily on customer delight initiatives as they are our true brand ambassadors. We have a healthy renewal rate of around 70%. Our default rates are around 3%.

In short, what’s your growth plan for the next five years? 

Having pioneered the Digital Lending in India, we are operating as per our Strategy of Deeper, Wider & Newer. We have offices in top 21 cities of the country, where we envision the best growth for acceptance of Digital payments. We will continue to expand into these markets and keep improvising and will come up with better solutions to help the SME segment.

Also, it is extremely important that the loans we give, cause a positive social impact, helping in job creation, women empowerment, development of SME’s, and we measure our success by the Social impact caused by us.

In the next 5 years we aim to cross Rs 7000 Cr in AUM; in other words, build a billion dollar balance sheet.

To read the full interview, click here.

Neogrowth - Aahar Mag Ad - 9-7-18 - Final New - 3

NeoGrowth’s advertisement was recently published in AHAR Connect (July edition) – A publication of Indian Hotel & Restaurant Association.

NeoGrowth changes the way SMEs access credit, a report by Business India.

Business-India-LogoThe technology & data driven approach of NeoGrowth to help SMEs with much needed financial assistance, was recently covered by Business India magazine in their June 2018 issue.

Business India is one of the strongest brand names in magazine publishing industry in India. Founded in 1978, the magazine, over the years has helped in creating awareness and generate public opinion on critical issues and choices in business, industry, economy and society.

While covering the Digital Impact caused in the Indian SME segment, NeoGrowth’ s innovative business model,best described in the words of Mr. Dhruv Khaitan (DK), the Charmian of NeoGrowth, stood out. “We have created a business model that operates at the convergence of three ecosystems – lending, urban retail and digital payments, on a platform of technology & innovation” said DK.

Founded in 2012, by Dhruv Khaitan (DK) & Piyush Khaitan (PK), NeoGrowth now operates across 21 locations in India, serving the SMEs of these regions with quick, timely and hassle free access to finance. NeoGrowth loans come with unique features like the daily repayment which is focused on customer centricity. This feature helps merchants to plan their cash flows better, especially taking into slow & off seasons. “These loans are processed much quicker than a typical loan, giving merchants fast access to cash when needed ” said PK.

Graph

The exponential journey of NeoGrowth witnessed in the Digital lending landscape garnered significant interest. NeoGrowth, in this short stint, scaled its disbursements from INR 9 Crore (2013) to INR 1358 Crore (2018). During the same period the revenue of the firm skyrocketed from INR 2Crore (2013) to INR 243 Crore (2018).

Positive Social Impact, a key element of NeoGrowth’s DNA was exemplified by the customer experiences shared by NeoGrowth customers, many of whom were first time borrowers. According to Vabez Sarosh Wankadia of Sams Studio, who have been providing specialized hair & beauty treatments to clients in the western suburbs of Mumbai,
“As a woman entrepreneur, I was able to dream big, because NeoGrowth helped me to have a new perspective.”

With the government’s thrust on digital payments in India, the under-served SME segment becomes an even bigger opportunity for Digital lenders, as the acceptance of digital payments is growing amongst large number of business owners.

 Click on the link to read complete article :https://goo.gl/7hFmW9

NeoGrowth listed amongst 10 Best Emerging Fintech Startups

The positive Social Impact ushered in by NeoGrowth through its lending facility to the SME retail segment was recognized by Insight Success magazine, which listed NeoGrowth amongst the 10 Best Emerging Fintech Startups of 2018.

The 10 Best Emerging Fintech Startups in 2018

Insight Success has been an arch that is sustaining Entrepreneurs quench their requirements for technology and business updates that are currently ruling the business world. The Magazine is one of its kind, which molds itself according to the choice of its readers every single month! Their aim is to share with the readers the information of their particular industry, as well the critical information they require and demand to grow their businesses.

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The financial assistance provided by NeoGrowth, to the under-served SME retail segment in form of quick, timely & hassle -free loans, based on digital payments, using technology and business model innovation , was a pioneering concept that stood out during the research done by Insight success magazine related to the Digital lending Space.

However the most appreciated fact related to NeoGrowth was the positive social impact caused by NeoGrowth, in terms of boosting entrepreneurship and job creation.

Creating a Positive Social Impact , is at the heart of the NeoGrowth’s business strategy, which is geared towards improving the financial lives of small and medium business merchants across India, more than 50% of whom are creditworthy but until now have been excluded from accessing loans based on traditional underwriting methods.

NeoGrowth caters to this under-served market by adopting an innovative approach and validating the creditworthiness of the business. This is done by looking at current business performance and stability. Till date over 15,000 business merchants have been helped by NeoGrowth to grow their businesses.

The unique tech & touch model of NeoGrowth, augmented by the in-house technology platform and smart analytics of the digital spends data ensure that NeoGrowth offers the best products and services in the market.