NeoGrowth – Strengthening India’s Small Businesses Through Finance

 

Introduction
For small businesses in India, access to capital is often the difference between survival and growth. NeoGrowth Credit Private Limited has become a trusted partner for SMEs, offering innovative credit solutions tailored to their realities. With over 75,000 businesses supported and loans disbursed across 25+ cities, NeoGrowth is making financial inclusion a reality for entrepreneurs nationwide.

Inclusive Lending Approach
Unlike traditional banks, NeoGrowth focuses on sectors often overlooked by mainstream finance—retail shops, eateries, salons, and small traders. By using digital data such as POS transactions and payment histories, NeoGrowth provides loans without demanding heavy collateral. This inclusive model has helped formalize many businesses that previously operated on cash flows alone.

Leadership and Team
The company’s leadership ensures that inclusion does not compromise financial discipline. MD & CEO Arun Nayyar has extensive experience in SME and consumer finance, while CFO Deepak Goswami brings expertise in scaling financial institutions responsibly. Their combined leadership ensures that NeoGrowth remains agile while being prudent.

Financial Performance – FY25

• AUM: ₹2,493.42 crore

• Revenue: ₹750.31 crore

• PAT: ₹9.02 crore

• Net Worth: ₹671.06 crore

• ROE: 1.36%

• NNPA: 2.96%

• CRAR: 29.07%

These figures highlight stability, though profitability remains an area for future growth. The high capital adequacy ratio provides a strong foundation for expansion.

Backed by Reputed Institutions
Equity investors such as Omidyar Network, Quona, Leapfrog, Lightrock, and FMO Entrepreneurial Bank have backed NeoGrowth’s journey. Debt financing partners include RBL Bank, IDFC First Bank, and HDFC Bank, as well as international financiers like Blue Orchard and Microvest. Such widespread support underscores NeoGrowth’s credibility.

Bond Investment Case
NeoGrowth’s secured listed bonds present an excellent investment case:

• Bond 1 (INE814O07527): 11.95% YTM, 6 months, min investment ₹43,926

• Bond 2 (INE814O07493): 12.10% YTM, 6 months, min investment ₹24,968

Both instruments are rated CARE BBB+, providing investors with high short-term returns along with reasonable security.

SME Sector Outlook
With digital adoption rising and government initiatives supporting MSMEs, the credit demand in this sector is only expected to grow. NeoGrowth, with its early mover advantage and technology-led model, is positioned to capture this growth effectively.

Conclusion
NeoGrowth represents the future of MSME financing in India—fast, digital, and inclusive. For investors, its bonds offer not only attractive returns but also participation in a socially impactful business model.