NeoGrowth, an MSME-focused lending platform, raised ₹85 crore ($8.8 million) in a debt and equity round led by Dutch development bank FMO, with participation from LeapFrog Investments, the company confirmed. The Mumbai-based startup plans to use the funds to scale its digital lending capabilities and deepen its market presence across India, aiming to increase credit access for small businesses.
Founded in 2012 by brothers Dhruv and Piyush Khaitan, NeoGrowth offers collateral-free loans ranging from ₹5 lakh to ₹75 lakh across more than 75 business segments. The startup’s lending model includes daily repayment options and multiple channels, designed to serve MSMEs that often face challenges in accessing formal credit. Managing director and CEO Arun Nayyar said the fresh capital will help the NBFC support more MSMEs with timely and accessible financing.
NeoGrowth uses proprietary AI technology to enhance underwriting, portfolio monitoring, and risk management. The company manages assets under management (AUM) of nearly ₹2,000 crore and has engaged with over 400,000 businesses, disbursing more than ₹16,000 crore in loans to date. During FY26, it expanded its branch network by 17 locations, reaching a total of 46 branches, reflecting its growing footprint in the digital lending sector.
The fresh ₹85 crore funding round led by FMO and LeapFrog Investments marks a key step in NeoGrowth’s expansion strategy. The company’s focus on digitally-enabled, collateral-free lending positions it to address the credit needs of India’s underserved MSME sector, which remains a critical driver of economic growth.