![Exclusive: NeoGrowth Bags $11 Mn Debt Funding From Symbiotics Group](https://inc42.com/cdn-cgi/image/quality=75/https://asset.inc42.com/2023/09/NeoGrowth-FY23-Financials-ftr-760x570.jpg)
NeoGrowth raised the debt from Symbiotics Group’s two special purpose vehicles – AAV Sarl and Masala Investments Sarl
The NBFC has to repay the debt with an interest of 12.15% per annum within a tenor of 60 months (5 years)
NeoGrowth’s profit jumped 313% YoY to INR 71.7 Cr in FY24, while operating revenue rose 57% to INR 599 Cr
Mumbai-based non-banking financial company (NBFC) Neogrowth has raised $11.2 Mn (INR 93.7 Cr) in debt from impact investment firm Symbiotics Group.
As per its regulatory filing, the startup has allotted 9,376 non-convertible debentures to Symbiotics Group’s two special purpose vehicles – AAV Sarl and Masala Investments Sarl.
NeoGrowth has to repay the debt with an interest of 12.15% per annum within a tenor of 60 months (5 years).
Founded in 2013 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth offers tailored credit solutions to small and medium-sized businesses across 70+ segments. The lendingtech platform’s offerings range from vendor financing to retail-focused loans.
It offers loans in the range of INR 10 Lakh to INR 70 Lakh, with tenure ranging from 24 months to 36 months.
NeoGrowth has partnered fintech startups like PineLabs, BharatPe, IndiaLends, and BuddyLoans to disburse the loans.
NeoGrowth’s profit jumped 313% to INR 71.7 Cr in the financial year 2023-24 (FY24) from INR 17.26 Cr in the previous fiscal year. Operating revenue grew 57% to INR 599 Cr during the year under review from INR 380 Cr in FY23. Being an NBFC, its primary source of revenue was interest income, which jumped 58% to INR 574 Cr in FY24 from INR 362.8 Cr in the previous fiscal year.
NeoGrowth raised a total funding of $66 Mn in a mix of debt and equity funding across multiple rounds in FY23. Overall, it has raised around $188 Mn to date and counts Dutch development bank FMO, Development Finance Corporation (DFC), Omidyar Network, and Lightrock among its backers.
Earlier this year, it was reported that the company was looking to raise an equity funding of INR 500 Cr from PE firms. NeoGrowth MD and chief executive officer Arun Nayyar then said that the NBFC was open for a strategic stake sale. He added that the company’s assets under management would double to INR 4,000 Cr by March 2025.