Digital lending platform NeoGrowth has secured RS 300 Crores ($47m) in an equity round led by LeapFrog.
Existing backers to the company Aspada Investment Company and Quona Capital also contributed to the funding. Following the transaction, LeapFrog partner Michael Fernandes has joined NeoGrowth’s board of directors.
India-based NeoGrowth provides small businesses with loans through the analysis and underwriting of daily digital payments sales data to assess risk. The platform helps to finance companies that might not have access to traditional banks.
NeoGrowth’s application can be competed online and allows lending products for both online sellers and in-person retailers. Borrowers can access loans of between RS 200,000 ($3,144) to RS 1.5m ($23,580) over a range of tenure options.
The company plans to use the equity to increase its loan book, increase its presence in India’s largest cities and expand to other urban areas.
NeoGrowth Credit managing director Piyush Khaitan said, “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 SME merchant segment.”
This marks the 10th FinTech investment in India this year. This week has also seen fellow online lending platform Shubham reportedly pick up $48m in its Series D round. OptaCredit, which is also a digital lending platform in India, closed a $4m credit facility from DMI Finance earlier in the week.
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