MUMBAI, India, July 5, 2016 /PRNewswire/ -- Fintech start-up NeoGrowth has raised $35 million (or INR 225 Crores) of equity to-date to advance its efforts to help small retailers, including qualified borrowers with little or no credit history, access credit in India. A significant portion of equity was raised in the current round. Using a data and technology-driven approach, NeoGrowth provides small and mid-sized retail enterprises with flexible, innovative loan products to that are secured against retailers' future credit card and debit sales. It is the first company in India to offer this type of loan product.
The funding round was led by IIFL Asset Management and co-led by existing investor, Accion Frontier Inclusion Fund, managed by Quona Capital. Other existing investors – Omidyar Network, Aspada Investments, and Khosla Impact – also participated in this round.
"We are pleased to welcome IIFL Asset Management to the NeoGrowth family of shareholders. They bring years of rich financial services experience on the ground in India, which will be invaluable to NeoGrowth," said Mr. Dhruv Khaitan, Founder & Chairman of NeoGrowth. "The additional investment by all existing investors in this round also is a demonstration of their continued excitement, and means a lot to us. We will use this money to build our loan book, and to invest in technology, brand, and distribution," he added.
"In NeoGrowth, we are backing a quality management team with a unique business model, something that we look in any of our investments. The promoters have an excellent track record, the management team is strong, and their business model that offers flexibility to their clients in repayment of loans is unique and could disrupt the market," said Prashasta Seth, CEO, India Infoline Asset Management Company. "We are confident of NeoGrowth's business model as it taps into a hitherto untapped credit-worthy market. Their technology advantage in seamlessly integrating operations and reaching a wider audience at a competitive cost will rapidly accelerate growth in the coming years. As a lead investor, we are happy to invest in companies like these which, along with their corporate goals, actively participate in financial inclusion."
"NeoGrowth has surpassed all growth and performance expectations as a result of its strong management team, unique blend of product and technology and customer interaction. Through our investment in this round, we have significantly renewed our commitment to the company," said Ganesh Rengaswamy, partner at Quona Capital. "Now a clear leader in the small business lending space, NeoGrowth is advancing financial inclusion by ensuring that entrepreneurs can access credit to expand and sustain competitive businesses."
NeoGrowth loan funds typically support retailers' expansion, renovation, one-time equipment purchases, or large seasonal inventory purchases. Borrowers benefit from the company's digital approach – managed through NeoGrowth's in-house technology platform AdvanceSuite©, flexible repayment terms, and minimum credit history requirements. More than three in four NeoGrowth customers return for a new loan.
About India Infoline Asset Management Ltd
India Infoline Asset Management Ltd is a part of IIFL Wealth Management Ltd and manages alternative investment funds, portfolio management services and asset management services. IIFL Wealth is the Private Wealth Management subsidiary of India's leading diversified financial services group, IIFL. Against the backdrop of global financial turmoil, we started operations in April 2008, building a strong advisory practice as opposed to a commission-based model. By aligning our interests with our clients, we have earned the trust of more than 8,300 families and we advise them on more than USD 12 bn of assets under advice, distribution and custody. This makes IIFLPrivate Wealth India's largest private wealth management firm in terms of assets under advice.
Headquartered in Mumbai, we have offices in:
Domestic: New Delhi, Bangalore, Chennai, Hyderabad, Kolkata, Pune, Goa, Ahmedabad, Baroda, Chandigarh, Jaipur, Ludhiana & Kanpur
International: New York, Houston, London, Geneva, Mauritius, Dubai, Singapore & Hong Kong.
About IIFL Seed Venture Fund
IIFL Wealth Management Ltd in FY16 raised a seed venture fund to invest in the start-up space. The first-of-its kind fund was raised under the category 2 of alternative investment fund (AIF) norms and is aimed to provide high-net-worth individuals (HNIs) access to the high-growth start-up investment opportunities, while providing risk capital to strong management teams with unique business models.
About the Accion Frontier Inclusion Fund and Quona Capital
The Accion Frontier Inclusion Fund, managed by Quona Capital, is the first global emerging markets fintech fund for the unbanked, investing in innovative financial technology and services companies that promote financial inclusion for the two billion people around the world who lack access to savings accounts, checking, insurance, credit, and other basic financial services. Quona Capital is an early growth-stage venture firm focused on financial technology for underserved consumers and businesses in emerging markets. The fund is sponsored by Accion, a global leader in inclusive finance with a rich history of "double-bottom line" investing, where its impact investments create positive economic and social returns. For further information, visit http://www.quona.com and http://www.accion.org/frontier.
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