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.
“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.
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.