NeoGrowth lists first Foreign Currency bond (FCB) at India International Exchange (IFSC), Gift City
The proceeds of the funding will be utilized for onward lending activities for MSMEs
India International Exchange (IFSC) in GIFT City, witnessed NeoGrowth, the MSME-focused digital lender, listing the first Foreign Currency Bond (FCB) for Euro 3.5 million (approx. INR 32 Crore) from Developing World Markets (“DWM”). This also makes NeoGrowth, the first issuer to leverage the unified depository at GIFT City – India International depository IFSC Ltd. for issuance of the first ISIN for a FCB bond from GIFT IFSC.
DWM is a U.S. impact investing firm that has provided close to USD 20 million in debt financing to NeoGrowth since 2016 to support NeoGrowth’s digitally-enabled lending model aimed at closing the financing gap for Micro, Small, and Medium Enterprises in India.
NeoGrowth will allocate the funds for advancing its onward lending initiatives to support its MSME portfolio customers.
Commenting on the successful listing, Arun Nayyar, Managing Director & CEO, NeoGrowth, said: “The IFSC at GIFT City is a transformative prospect for Indian companies to secure offshore funds right here in India and we, at NeoGrowth, are proud to participate in this. As the initiative gathers traction it will not only help financial institutions like NeoGrowth to diversify our funding sources but also pave the way for other industries to seek funding beyond traditional channels.”
Robert Constantino, Head of Debt, DWM, said, “DWM is pleased to deepen its partnership with NeoGrowth through this additional financing that empowers MSMEs across India. Investing in NeoGrowth’s values-driven lending initiatives is well-aligned with DWM’s core strategy of providing impactful financing solutions that address social, environmental, and economic challenges in the developing world.”
NeoGrowth presently has an impressive INR 2,298 Crore in Assets Under Management (AUM). Since its inception, the company has successfully engaged with over 1,50,000 MSMEs, disbursing loans exceeding USD 1.1 Billion (over INR 10,000 Crore). As a leading SME lender in India, NeoGrowth has consistently achieved profitability over the past quarters, propelled by a comprehensive product suite, a robust data-driven underwriting model, profound customer engagement, and formidable data science capabilities throughout the value chain.
The company specializes in offering loans to small businesses, leveraging digital transactions and cash flow underwriting to assess business health. NeoGrowth’s lending initiatives are dedicated to promoting financial inclusion for first-time entrepreneurs, women business owners, and underserved small businesses. Operating across 70+ segments, from neighborhood Kirana stores to emerging eateries and upscale salon operators, NeoGrowth delivers technology-driven, swift, and hassle-free loans to MSMEs in over 25 locations across India.
NeoGrowth’s success is further fortified by the backing of esteemed investors such as Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, IIFL Seed Ventures Fund and Leapfrog Investments.
NeoGrowth was founded by Dhruv Khaitan and Piyush Khaitan a decade ago. NeoGrowth is a new-age lender, with a focus on Micro, Small, and Medium Enterprises (MSMEs). It is a Systemically Important, Non-Deposit taking Non- Banking Financial Company (NBFC-ND-SI), offering a wide range of products tailored to the dynamic needs of small businesses. Its data science and technology-led approach enable it to offer quick and hassle-free loans to MSMEs across 75+ segments across 25+ locations in India. NeoGrowth offers a unique daily repayment option to its customers with multi-channel repayment modes. It has served and engaged with 1,50,000+ businesses and supported them with their growth ambitions. It not only helps small businesses grow but also drives financial inclusion making a positive social impact. Founded by industry veterans, its Board of Directors comprises experts, who guide the leadership team toward its strategic goals. NeoGrowth is also backed by renowned investors, namely Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, 360 One Asset, FMO, and Leapfrog Investments.
About DWM:
Founded in 1994, Developing World Markets is a dedicated impact investing firm that seeks investible solutions that sustainably address the social, environmental, and economic needs of the developing world. DWM has over two decades of experience in emerging and frontier markets. Through DWM Asset Management, LLC, the firm’s SEC-registered investment adviser, DWM has made over $2.5 billion of private debt and private equity in impact-oriented enterprises, including over 900 loan disbursements and 25 private equity stakes in more than 70 emerging and frontier countries.
