NeoGrowth gets a rating upgrade

CARE Ratings has upgraded the rating of NeoGrowth Credit’s Non-convertible Debentures rated by them from CARE BBB to CARE BBB+, signifying a stable outlook for the company.

rating

CARE Ratings provides the entire spectrum of credit rating that helps corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Its rating and grading service offerings leverage its domain and analytical expertise backed by methodologies congruent with the international best practices.

The rating revision of NeoGrowth, factors in the sizeable capital infusion of Rs.300 crore in the company which has significantly improved the capitalization levels of the firm. The rating also factors in the extensive experience of the promoters and the management team in the industry and the comfortable liquidity profile. “We look forward to further improving our ratings over the next few years so as to access larger & lower cost debt. This is core to our growth strategy and will have a critical role to play in shaping our pricing strategy going forward” said PK Khaitan, Managing Director, NeoGrowth.

The unique business model of NeoGrowth, providing loans to merchants across India, based on digital spends happening on the Point of Sale (POS) machine at their outlets, has helped the firm expand to 21 cities across the country. Harnessing its tech & touch model, NeoGrowth has brought merchants from various industry segments under the umbrella of
Digital Lending.

NeoGrowth is making steadfast developments in technology and product domain to serve the customers better. Convenient & easy to use onboarding tools like Sales App equipped with e-sign feature have helped NeoGrowth make the process from Loan application to disbursal, smooth & efficient.

NeoGrowth aims at leading the fast changing Digital lending environment,which has thrown open new opportunities in terms of utilizing alternate data sources like GST ( Goods & Service Tax) returns of merchants, digital spends etc as to arrive at underwriting decisions.