NeoGrowth Credit Pvt Ltd, a digital lending platform for MSMEs, achieved a revenue of over Rs 380 crore in FY23 and became profitable. During the fiscal year ending March 2023, the company’s revenue from operations remained steady at Rs 381 crore, showing a growth of 5.4% compared to FY22’s Rs 361.6 crore. On the other hand, the net profit surged by 73% to Rs 10.7 crore in FY23 from Rs 6.2 crore in FY22.
Manmeet Singh, the company’s chief business officer, attributed the profitability to NeoGrowth’s emphasis on responsible lending and robust risk management practices. Singh added that the company aims to disburse loans amounting to Rs 1,000 crore in FY24.
NeoGrowth garners support from prominent investors such as Omidyar Network, Lightrock, Khosla Impact, Quona Capital, IIFL Seed Ventures Fund, WestBridge, and Leapfrog Investments. With a funding of over Rs 600 crore, the company has attracted substantial backing.
The growth of NeoGrowth indicates the rising demand for digital lending solutions among MSMEs in India. The Indian MSME sector represents a vast and expanding market, housing more than 63 million businesses. These enterprises face a credit gap of approximately Rs 5 trillion. NeoGrowth is well-positioned to capitalize on this market and provide crucial credit to MSMEs.
