NeoGrowth’s profit grows to INR 95 Crore in FY24

Mumbai, May, 16th, 2024: NeoGrowth, the MSME-focused digital lender in India, announced its financial results for the FY24 and fourth quarter that ended on March 31st, 2024.

Arun Nayyar - Image

Mr. Arun Nayyar, Managing Director & CEO, NeoGrowth, said: “We are focused on serving the large, growing, and profitable MSME segment, aiming to empower them with accessible and efficient financial solutions and driving sustainable growth. We had a stellar FY 2023-24 at NeoGrowth, and are delighted to announce that our profit has grown to INR 95 crore. We are proud to share that ICRA has upgraded our rating from BBB to BBB+, underscoring the trust our customers have bestowed upon us and acknowledging our efforts to streamline lending processes for MSMEs throughout India. This achievement is a testament to the dedication of our partners and employees, whose unwavering support has been instrumental in our success.

Looking ahead, with an adequate capital base, we remain committed to leveraging our robust digital infrastructure, enhance customer experience, mitigate credit risks, reduce borrowing costs, and foster greater operational efficiency; solidifying our commitment to meeting the evolving needs of the MSME sector,” added Mr. Arun Nayyar.

Over the years, NeoGrowth has developed a sustainable business model through deeper customer understanding and a robust risk management framework which aided the growth in FY24

NeoGrowth’s customer selection and risk management approach is differentiated by objective decision making driven by data and analytics and maintaining the right balance of customer connect. NeoGrowth’s segmented and modular risk framework enables optimal risk reward balance for optimal growth. The company follows a flow-based lending model based on the digital payments of MSMEs to gauge business volumes leading to objective scoring and decisioning. NeoGrowth offer a holistic suite of products across retail and supply chain MSME segments, to fulfil the customers’ business needs. The unique flexible, daily repayment model offers the customers with an industry-first approach, which helps reduce the debt burden of these MSME borrowers. A paperless, end-to-end digital loan journey ensures quick loan disbursals to MSMEs, especially beneficial when MSMEs want to take advantage of quick bulk discount offers and have immediate funding requirements to take full advantage of the offers and deals and pass on the same to their customers.

With a keen focus on MSMEs in the Retail and Supply Chain sectors, NeoGrowth has successfully disbursed over USD 1.5 billion across 55,000+ customers since inception. Our lending approach is deeply rooted in fostering positive impacts and setting a benchmark for financial inclusion in India. Notably, NeoGrowth aligns its business activities with six of the United Nations Sustainable Development Goals (SDGs), demonstrating our ongoing commitment to holistic contributions towards a sustainable future.

NeoGrowth’s success is further enhanced by the backing of esteemed investors such as Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, 360 One Asset, FMO, and Leapfrog Investments.