NEOGROWTH CREDIT PVT. LTD.
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
NeoGrowth Credit Pvt. Ltd is an early-stage FinTech MSME merchant cash advance lender in India that started operations in 2014. NeoGrowth provides loans to MSMEs based on analysis and underwriting of digital payments data. The company is an FMO client since 2017.
What is our funding objective?
NeoGrowth’s loan portfolio consists of loans to Micro, small and medium-sized retail merchants. The FMO loan facility is directed to financing the Micro part of the portfolio, with a focus on small ticket loans.
Why do we fund this investment?
The loan facility fits with FMO’s focus on providing credit to FinTech lending companies that are specifically focused on reducing inequalities through lending to MSMEs, using digital tools and platforms. NeoGrowth’s end clients are (first generation) entrepreneurs who are excluded from the formal banking sector because they do not have reliable financial statements, credit history or equipment or similar assets that can be provided as security for a bank loan. NeoGrowth assesses creditworthiness based on cash flow data from point-of-sale terminals of merchants. Loan collection is done electronically on a daily basis, addressing seasonality in the business of merchants and hence managing credit risks. In this way NeoGrowth is able to offer credit to this underserved sector.
What is the Environmental and Social categorization rationale?
NeoGrowth is an Environmental & Social category C client, as it provides short term loans to small and medium merchants. NeoGrowth has an Environmental, Social and Human Capital Policy in place with an exclusion list and follows good consumer protection practices.
More investments
| Date | Total FMO financing |
|---|---|
| 11/25/2022 | INR 1599.96 MLN |
| 12/7/2020 | INR 740.00 MLN |
| 11/18/2022 | INR 600.00 MLN |
| 3/23/2022 | INR 650.00 MLN |
- Website customer/investment
- http://www.neogrowth.in
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 4/29/2022
- Effective date
- 7/15/2022
- Total FMO financing
- INR 800.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C