Digital lending platform Neogrowth today said it has raised Rs 300 crore funding in a round led by Leapfrog Investments by selling an undisclosed stake. Existing investors including Aspada Investment Company and Quona Capital, through Accion Frontier Inclusion Fund, also participated in the round.
The company, founded in 2012, is focused on lending to the small business segment and has now expanded its presence to 21 cities across the country.
“India’s digital lending space is experiencing massive growth, providing unprecedented opportunity for Neogrowth to apply its pioneering technology approach to enable loans for a rapidly expanding small business merchant segment,” co-founder Piyush Khaitan said.
Avendus Capital, the deal advisor, said 85 per cent of small businesses in the retailer ecosystem rely on self-finance and financing from noninstitutional sources, presenting an opportunity for financiers like Neogrowth.
It added India has nearly six million retailers, who present a potential financing opportunity of Rs 3 lakh crore. The company is driven by data and uses for analytics for underwriting the risk, it said.