NeoGrowth, a digital lender focused on micro, small and medium enterprises (MSMEs), has raised Rs. 850 mn through a combination of equity and debt from Dutch development finance institution FMO and existing investor LeapFrog Investments. The Mumbai-based company said the funding would support the expansion of its lending operations.

NeoGrowth plans to grow its loan book to nearly Rs. 30 bn before seeking another equity infusion. The company previously raised Rs. 3 bn in a Series D equity round in December 2022, led by FMO along with its existing investors.

Founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth provides collateral-free and collateral-based business loans. Its technology platform uses digital payment data, point-of-sale transactions and business cash flows to assess borrowers, reducing reliance on traditional collateral. The lender also provides repayment options on daily, weekly, fortnightly and monthly schedules.

NeoGrowth operates in more than 25 cities across India and serves over 80 business segments, including kirana stores, manufacturers, traders, distributors and small service providers. The company says it has served more than 100,000 businesses. Digital lenders are increasingly using GST records, banking transactions and digital payment trails to evaluate creditworthiness and extend financing to underserved MSMEs.

The sector has continued to attract investor interest through supply chain financing and embedded credit models. Prayaan Capital raised Rs. 1.1 bn in a Series A round in February 2026, while GetVantage secured Rs. 630 mn in Series A1 funding in August 2026. Business Nextgen Finance raised Rs. 2.15 bn in equity, while FlexiLoans and Techfino raised Rs. 3.75 bn and Rs. 650 mn, respectively, in 2025 to expand their technology-enabled lending businesses.