NeoGrowth raises $8.78M from FMO, LeapFrog to grow MSME loan book
What's the deal? NeoGrowth, a Mumbai-based digital lender serving micro, small, and medium enterprises (MSMEs), has raised US$11.5M (roughly $8.78 million) in a debt round from Dutch development finance institution FMODealroom has a profile for this one. Try Dealroom → and existing investor LeapFrog InvestmentsDealroom has a profile for this one. Try Dealroom →.
What's the endgame? The company plans to grow its loan book to nearly US$407.4M before it needs another equity infusion. Co-founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth offers both collateral-free and collateral-based business loans to small firms.
How it works: Instead of relying solely on traditional collateral, it assesses borrowers using digital payment data, point-of-sale (POS) transactions, and cash flows. It also offers flexible repayment schedules — daily, weekly, fortnightly, or monthly.
The lender claims to operate in more than 25 cities across India, serving over 80 business segments and more than 100,000 businesses. It previously raised US$40.7M in a Series D equity round in December 2022, also led by FMO.
The signal: India's digital lenders are increasingly using GST records, banking transactions, and digital payment trails to extend credit to underserved MSMEs such as kirana stores, traders, and distributors. The segment has drawn steady investor interest: Prayaan Capital raised US$14.9M in February 2026, GetVantage secured US$8.56M in August 2026, and FlexiLoans raised US$50.9M in June 2025.
Read more: m.dailyhunt.in
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