MSME-focused digital lender NeoGrowth has successfully secured ₹42 crore (approximately $5 million) in debt funding through UTI International Wealth Creator. This marks the second debt infusion for the Mumbai-based company in the current calendar year.
NeoGrowth’s board recently approved the issuance and allotment of up to 4,200 non-convertible debentures (NCDs), carrying an interest rate of 11.7% per annum, as revealed in its regulatory filings. The investment was made by UTI International Wealth Creator 4, a debt fund managed by UTI Asset Management Company.
The funding comes as NeoGrowth plans to raise ₹500 crore in growth capital through private equity investments. The company, which reported managed assets worth ₹2,750 crore at the end of the last fiscal year, aims to achieve ₹4,000 crore in assets under management (AUM) by FY25.
Co-founded by Dhruv Khaitan and Piyush Khaitan, NeoGrowth is an NBFC specializing in short-term unsecured loans for MSMEs. The lender offers loans of up to ₹75 lakh with tenures extending up to 100 months.
Over the years, NeoGrowth has secured $138 million in a combination of equity and debt from prominent investors, including MicroVest, FMO, Omidyar Network, and DFC.
Financially, NeoGrowth experienced significant growth, with its gross revenue rising 57% to ₹601 crore in FY24 compared to ₹381 crore in FY23. Additionally, its profit before tax surged nearly fourfold, reaching ₹95 crore in FY24, up from ₹24 crore in the previous fiscal year.