NeoGrowth, a Mumbai-based digital lender focused on micro, small and medium enterprises (MSMEs), has raised Rs 85 crore through a combination of equity and debt from Dutch development finance institution FMO and existing investor LeapFrog Investments.
The funding, reported by Entrackr on October 9, 2026, will help the company expand its loan book to nearly Rs 3,000 crore before it requires another equity infusion, according to the company’s press release.
NeoGrowth previously raised Rs 300 crore, equivalent to $36 million, in a Series D equity funding round in December 2022. The round was led by FMO along with existing investors.
Co-founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth provides business loans tailored to the requirements of small businesses. Its lending products include both collateral-free and collateral-based loans for MSMEs.
The company uses technology and data analytics to assess borrowers by examining digital payment data, point-of-sale (POS) transactions and business cash flows, rather than relying solely on traditional collateral. It also offers flexible repayment options, with collections scheduled daily, weekly, fortnightly or monthly.
NeoGrowth says it operates in more than 25 cities across India and serves over 80 business segments, with more than one lakh businesses among its customers.
Digital lenders in India are increasingly using GST records, banking transactions, digital payment histories and other business data to evaluate borrowers’ creditworthiness. These methods enable lenders to extend credit to businesses such as neighbourhood retail stores, manufacturers, traders, distributors and small service providers that may have limited access to traditional financing.
The MSME lending segment has attracted investor interest as financial technology companies develop supply chain financing and embedded credit solutions to serve businesses that remain underserved by conventional lenders.
Recent funding activity in the sector includes Prayaan Capital, which raised Rs 110 crore in a Series A round led by Peak XV Partners in February 2026 to develop its technology-led MSME lending platform. In August 2026, GetVantage secured Rs 63 crore in Series A1 funding to expand its cash flow-based financing platform.
Business Nextgen Finance also raised Rs 215 crore in equity to expand its technology-enabled secured lending operations for underserved MSMEs. Earlier, FlexiLoans raised Rs 375 crore in a Series C round in June 2025, while Techfino secured Rs 65 crore in June 2025 to expand its technology-enabled lending business in smaller cities.
NeoGrowth’s latest fundraise adds to the funding activity in India’s digital lending market, where technology-led lenders are seeking to expand access to credit for small businesses.
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