Small and medium-sized businesses are responsible for 30% of India’s GDP but struggle for traditional financing.
Mumbai-based NeoGrowth underwrites loans and lines of credit based on businesses’ records of digital payments — a fast-growing way of doing business in the aftermath of the Indian government’s move to reduce the amount of paper currency in circulation.
NeoGrowth has worked with more than 5,000 businesses, nearly 50% of which hadn’t previously had access to credit. LeapFrog Investments led the $47 million round, which also included investments from existing investors Aspada Investment Co. and Quona Capital.
The new funding follows previous investments from Omidyar Network, Khosla Impact, Aspada , Accion’s Frontier Inclusion Fund, Quona and others.