$2.4 Million Investment to Support Entrepreneurs and Expand Financial Inclusion in India
Cambridge, MA, August 6, 2015– Financial inclusion pioneer Accion announced today that it has finalized a $2.4 million (INR 15 Crores) investment in NeoGrowth, a Mumbai-based small-business accelerator that provides advance loans and related financial services to small- and medium-sized merchants who accept electronic payments, throughout India.
Founded in 2012 by brothers Dhruv and Piyush Khaitan, NeoGrowth has disbursed over 1,200 small-business loans representing over $25 million in value since 2014. Unlike merchant cash-advance models that charge exceptionally high rates and fees, NeoGrowth prides itself on fostering and developing small businesses, providing transparent pricing to its clients. The startup also offers e-payments and customer relationship management (CRM) solutions.
Using a unique model, NeoGrowth’s 120 employees work throughout across key geographies including Mumbai, Bangalore and Delhi to provide credit exclusively to retailers that accept electronic payments, establishing a daily repayment mechanism that lets borrowers repay their loans quickly and conveniently. NeoGrowth’s loan repayment plans do not feature fixed terms, and the startup works with borrowers to agree on a daily percentage of card sales to repay the loan.
“We’re very excited to invest in NeoGrowth, support small businesses in India, and expand on Accion’s work fostering financial inclusion throughout the country,” said Ganesh Rengaswamy, Managing Director, Accion Frontier Investments Group, who will join NeoGrowth’s Board of Directors. “India’s retail market is expected to reach $950 billion by 2018, and the cashless economy is growing tremendously. Small merchants across India are striving to capitalize on this retail and cashless boom, and NeoGrowth’s product provides them with the financing that they need to realize their ambitions. Ultimately, our investment will help more entrepreneurs access and use the financial services that all businesses, regardless of their size, location, or connections, need to flourish.”
Piyush Khaitan added, ”Over the last few months, I have got to know Frontier Accion, and the people behind the fund quite well. In them, we find a unity of mission and purpose in what we aspire to do in NeoGrowth. They also bring necessary global experience and a well developed network that we will leverage as part of our growth.”
NeoGrowth selects clients through a robust credit underwriting process that incorporates a strong risk-assessment scoring method. Its technology and data platform uses local credit bureaus and CRM information to make real-time decisions quickly and effectively.
NeoGrowth’s founders, Dhruv and Piyush Khaitan previously founded and successfully exited Venture Infotek, India’s first payment processing and non-banking merchant acquiring company. Dhruv Khaitan is the Non-Executive Chairman and Piyush Kahitan is the Managing Director of NeoGrowth.
About Accion Frontier Investments Group
Accion’s Frontier Investments Group is a venture equity initiative that invests in companies with disruptive models that enhance the efficiency, reach and scope of financial products and services for those underserved in emerging markets. Frontier has significant focus on leveraging innovation and technology to advance financial inclusion globally. Frontier is part of Accion, a pioneer and global leader in financial inclusion with five decades of experience in emerging markets – including feet-on-the-ground and institutional relationships on four continents and a deep bench of industry specialists. Additional information is available atwww.accion.org/frontier.
NeoGrowth Credit Pvt Ltd. has launched NeoCash, the Smart Merchant Advance. NeoCash is a first of its kind business finance option for retailers, restaurants, petrol stations, groceries and pharmacies etc. NeoCash is tailor made for merchants accepting card payments, has no fixed EMI and allows automatic repayment. The product requires minimum credit history, very little documentation, and comes with a doorstep fulfilment service.
Having set up business in 2012, NeoGrowth is active in Bengaluru, Chennai, Delhi, Mumbai & Pune and plans to expand to more centers across India. NeoGrowth has built AdvanceSuite©, a sophisticated Smart Merchant Advance platform that enables seamless enterprise wide workflow integration, automated tracking, robust risk management, reporting and business intelligence capabilities.
In 2014 NeoGrowth also launched NeoCash Online, a loan product designed to meet special needs of merchants selling Online. The loan application process is fully automated, with best in class features and turnaround times.
Senior Communications Specialist, Accion
Tel. +1 617-625-7080, ext. 1037