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NeoGrowth, an MSME-focused digital lender, has secured a INR 85 crore investment led by FMO, the Dutch entrepreneurial development bank, with participation from LeapFrog Investments. The funds will support the company’s next phase of growth, including wider credit access for MSMEs, stronger digital lending capabilities and a deeper market presence.
NeoGrowth manages assets under management (AUM) of close to INR 2,000 crore, has engaged with over 4,00,000 customers and has enabled more than INR 16,000 crore in disbursements. In FY2025-26, it added 17 new branches, taking its presence to 46 locations. Between April 2025 and July 2026, the company raised close to INR 2,000 crore in debt funding from 18 lenders. It continues to strengthen underwriting, portfolio monitoring and risk management through proprietary AI-powered initiatives.
“This investment strengthens our ability to support more MSMEs with timely and accessible formal credit as we scale our business. We remain committed to enabling more small business owners to pursue their growth aspirations through our financially inclusive lending solutions,” said Arun Nayyar, Managing Director and CEO, NeoGrowth.
NeoGrowth is a Middle Layer NBFC offering loans to MSMEs across 75-plus segments, with a daily repayment option and multiple repayment channels. Founded over a decade ago by Dhruv Khaitan and Piyush Khaitan, it is backed by Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund (Quona Capital), 360 ONE Asset, FMO and LeapFrog Investments.
“FMO has partnered with NeoGrowth since 2017 and invested USD 20 million in equity in 2022. We’re pleased to further strengthen that partnership through this investment, which reflects our continued confidence in NeoGrowth’s team, business model, and ability to responsibly scale its impact,” said Peter Byrde, Director Private Equity, FMO.
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