NeoGrowth at the Asia Summit and Live on CNBC in Singapore

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On September 17-18, The Milken Institute brought together about 400 CEOs, major investors, heads of sovereign wealth funds, philanthropists and other leaders for its second annual Asia Summit held at Singapore’s Four Seasons Hotel.

These leaders focused on some of the world’s most pressing challenges with a highlight on Asia. Panel topics included hyper-aging, financial technology, Indian Prime Minister Narendra Modi’s second year, Japan’s resurgence in the Asia- Pacific region, the AIIB and the evolving multilateral lending landscape, and China’s growing movie industry.

Mr. Piyush Khaitan (PK) Managing Director of NeoGrowth participated in The Asia Summit program as a panelist on FINTECH in Asia: What Comes Next?

The Subject included discussion on Financial Technology (FinTech) startups. What are the latest innovations in Asia’s rapidly growing FinTech sector? How are banks responding and should they be concerned? How will regulators adapt to these insurgent companies, and can they balance protection and progress?

Here are some of the key points made by PK:
• FINTECH is changing traditional banking by bringing widespread financial access to all segments of society
• The problem for small business in India is inadequate finance due to poor/no credit history, creating a challenge in getting loans from formal lending institutions
• Fintech companies like NeoGrowth are disrupting this space through digital lead origination, automated underwriting with data from alternate sources, flexible & automated repayments, automated portfolio management with easy renewals based on analytics and automated loan monitoring

• Customers have liked the NeoGrowth product, this is reflected with a Renewal rate of 85%, and customers in 4th & 5th cycle of lending within just 2 years of commercial operations.
• Focus has turned to win the “digital mind space” of the customer.
• Disruptive Innovation is changing the way customers interact & use financial services.
After the fruitful panel discussion, Mr. Piyush Khaitan was also interviewed by CNBC (Live from Singapore) on how NeoGrowth, a new age FinTech organization is providing a solution to the age old funding problem of small and medium-sized enterprises (SMEs).

All eyes were on one single question – Is this the answer to SMEs’ funding woes?

The interview focused on how NeoGrowth is ending the funding woes of SMEs without a fixed repayment schedule.

Please click here: http://video.cnbc.com/gallery/?video=3000422040 to view the interview.

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The interview was part of the popular CNBC morning time show “The Rundown”. This is broadcast from CNBC Asia’s Singapore Exchange studios and is presented by Adam Bakhtiar and Pauline Chiou. The Rundown is an Asian pre-market business news program aired Monday through Friday on CNBC Asia, show provides information about all the buzz from Wall Street to arm its viewers for the coming Asia trading day.
Summary of the interview:

NeoGrowth lends to small businesses. These are businesses that find it difficult to get loans from banks directly. They could be a Grocery, Pharmacy, Café or a Salon. We give them a loan that does not have a fixed repayment schedule so they can actually pay us on the basis of how their business has done that very day, so if a business has done better they pay more money and if it has not been a good day they actually pay us less.

NeoGrowth in The City of Pearls

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NeoGrowth is now operational in Hyderabad, the City of Pearls. The Hyderabad branch is a full service branch, with a Direct Sales Team, Referral Agents and Alliance partners. The branch also has Underwriting, Customer Services and Portfolio Management teams. This is our sixth branch after the ones at Mumbai, Delhi, Bengaluru, Chennai and Pune, and will serve the twin cities of Hyderabad and Secundrabad.

NeoGrowth Hyderabad Team The Secret of getting ahead is getting started
Hyderabad is well-known for four specialties – Pearls, Chai, Biryani & Information Technology.

Hyderabad was historically known as a pearl and diamond trading centre and it continues to be known as The City of Pearls. Hyderabad is said to be the largest market for pearls in the country. Many of the city’s traditional markets like Laad Bazaar, Begum Bazaar and Sultan Bazaar, have remained open for centuries.

Irani Chai is to Hyderabad what Coke is to America. In no other city of India, one can find so many Irani Cafes like the ones springing up in Hyderabad. It is the Irani Cafes where many business meeting are held over a cup of Tea. Biryani in Hyderabad dates back to the royal kitchens of the Asaf Jahis and their rich culinary extravaganzas. Today, there are several versions of the original recipe of Biryani in the city.

In the Hyderabad’s history of enhancing pearls, beautiful poetry, mouth-watering multi-cuisine we also have modernization catching up in Hyderabad as city is growing into an Information Technology hub, and developing as a lively urban metropolis. This has led to the city also being called “Cyberabad”.

The retail sector in general has grown at a tremendous pace with modern shopping malls, and all the retail brands in the market having a visible presence in Hyderabad. With this, the twin cities have experienced a growth not only in retail outlets, but also in verticals like restaurants, beauty & wellness as well as healthcare.
NeoGrowth’s presence will enable such small businesses to access loans in a quick and easy manner. NeoGrowth will provides vital growth capital to businesses and acts as a catalyst to accelerate business growth and help them become more successful.

NeoGrowth raises additional capital to complete the current round.

NeoGrowth is happy to announce that we have raised Rs.15 crore from Accion Frontier Investments Group as a top up to the present round of funding. NeoGrowth will be using this capital to invest in building technology that would allow automated loan approval and a fully-integrated marketing & lead generation engine. The investment raised also increases the company’s ability to lend by leveraging debt.

This takes the funds raised in the round to Rs.45 crore. This round was also led by Khosla Impact and saw participation of existing investors – Omidyar Networks and Aspada.

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“In our endeavor to become India’s most admired Fin-Tech Company, enhancement of technology will lead to greater customer centricity & higher service levels. Automation will help us create a self- service model for our customers, helping them go through the process without manual intervention” said Dhruv Khaitan Chairman of NeoGrowth.

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Mr. Ganesh Rengaswamy, Managing Director, Accion Frontier Investments Group has written an interesting LinkedIn blog on “Why we invested in NeoGrowth?”

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Why we invested in NeoGrowth? (and new beginning for SMEs) – Aug 13, 2015

It was the best of times, it was the worst of times (A Tale of Two Cities, 1859)….
Over 150 years ago, Charles Dickens might as well have been referring to the Small and Medium Enterprises (SME) in India (and several other emerging markets). The SMEs have always been the neglected segment who lacked (a) access to capital and fair terms financing (b) ease of procuring supplies (c) meaningful credit history and (c) integration into the formal economy. But in the last few years, there seems to be a perceived explosion in SME oriented solutions. But the reality is a mixed bag and they continue to thrive in a paradox. The inability of larger players (especially Banks and NBFCs) to assess a small enterprise’s credit worthiness has been the undoing of SMEs in a country where over 80% enterprises are SMEs.
In this context, NeoGrowth has emerged as an accelerator of SMEs and a pioneer in SME financing in USD 850 billion Indian market. With it’s unique ability to combine transaction data, analytics, technology platform and credit assessment, NeoGrowth strives hard to assess and reach SMEs. Also, where most financiers serve enterprises with significant assets (that becomes obvious collateral for loans), NeoGrowth caters to service SMEs/Retailers, who are largely untouched (or are “lending untouchables”). This, in turn, is helping these “untouchables” build a financial footprint to become credit and business worthy, and enabling them to break the formal economy entry barrier. Through a series of customer friendly innovations (like leveraging electronic transaction data to assess credit, automated daily repayment, data driven CRM solutions to customers), NeoGrowth is changing the game, one SME at a time!

Competition will come, as it always does, once someone has paved the way in a massive market with game changing possibilities. But, Piyush Khaitan and the team that built one of the toughest businesses – leader in Indian POS and payment processing industry in their previous avatar – are geared up for the challenge.