NeoGrowth raises $20 million via ECBs from DFC
- ByStartupStory | November 2, 2022
NeoGrowth Credit, an NBFC, has received $20 million in capital from the United States International Development Finance Corporation (DFC) through an External Commercial Borrowing (ECB) channel.
In India, DFC has a sizable investment portfolio that includes investments in health, agriculture, renewable energy, climate solutions, and other vital areas. This financial commitment is for five years with a two-year principal payment moratorium and will be used for onward lending to SME clients in accordance with ECB criteria.
According to Arun Nayyar, CEO of NeoGrowth and its full-time director, “We will use these funds to further give credit to our customers in order to push their business growth.”
“DFC’s investment in NeoGrowth will expand Indian small enterprises’ access to funding. NeoGrowth can reach more small businesses because of its digital, adaptable strategy, fostering financial inclusion, economic development, and growth across the nation,” said James Polan, vice president of DFC’s Office of Development Credit.
In its nearly 10 years in the SME lending market, NeoGrowth claims to have worked with over 1 lakh customers and dispersed over $1 billion in loans over 25 facilities in India. According to NeoGrowth, the company’s digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment choices are critical to enabling SMEs’ credit access.
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