Mumbai-based lending company NeoGrowth has raised Rs. 85 crore through a mix of debt and equity funding. Dutch development bank FMO led the round, while LeapFrog Investments also participated. The company will use the money to expand digital lending, reach more Indian businesses and provide loans to small enterprises.
NeoGrowth plans to improve its digital lending services and make it easier for micro, small and medium enterprises (MSMEs) to access loans. The company uses artificial intelligence (AI) to check loan applications, track repayments and manage lending risks. These tools help the lender make better decisions while serving more small businesses.
Founded in 2012 by brothers Dhruv and Piyush Khaitan, NeoGrowth provides loans to businesses across more than 75 industry segments. It offers collateral-free loans ranging from Rs. 5 lakh to Rs. 75 lakh through products such as NeoCash, NeoCash Insta and NeoCash Express. Borrowers can also choose daily repayments and use different payment methods.
The company currently manages assets worth nearly Rs. 2,000 crore and has worked with more than four lakh businesses. It has provided loans worth over Rs. 16,000 crore since its launch. During FY26, NeoGrowth opened 17 new branches, taking its total network to 46 locations across India.
Managing director and CEO Arun Nayyar said the new funding would help the company provide timely credit to more small businesses. He added that NeoGrowth aims to help business owners grow through financial services that reach more people.
The latest funding follows NeoGrowth's Rs. 300 crore equity round in 2022, which also received significant support from FMO. Between April 2025 and July 2026, the company raised nearly Rs. 2,000 crore in debt from 18 lenders.
The funding comes as digital lenders compete to serve small businesses that often struggle to secure bank loans. Companies such as Lendingkart, FlexiLoans, Indifi Capital and Aye Finance also use technology to provide credit to MSMEs.
NeoGrowth now aims to expand its lending business while carefully managing loan risks. NeoGrowth plans to use digital systems to expand its reach and improve access to credit for small businesses.
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