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NeoGrowth Credit: Driving Digitalization in the SME lending space

NeoGrowth Credit: Driving Digitalization in the SME lending space

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Piyush Khaitan,Co-Founder& Managing
Piyush Khaitan
Co-Founder& Managing Director

The Union Budget 2018-19 gave a special emphasis on the MSME sector providing a huge boost to the players present in the industry, especially the Digital Lending companies. This demonstrates the government’s approval to provide adequate finance to MSME sector, complementing the efforts of the industry and thus creating a positive impact. Mumbai based NeoGrowth Credit Pvt. Ltd.works actively towards providing quick and easy access to credit to the under-served MSME segment. The company through its technology-enabled processing caters to provide loans to the merchants against their future digital sales and unlocks credit that is tailored to the merchant’s business requirement. “Our loans come with unique features like the daily repayment model which is focused on customer centricity. This feature helps merchants to plan their cash flows better, especially during slow and slack seasons. These loans are processed much quicker than a typical loan, giving merchants’ fast access to cash when needed,”speaks Piyush Khaitan(PK), Co-Founder &Managing Director, NeoGrowth.
NeoGrowth with its unique tech and touch modelelevated by the in-house technology platform and smart analytics of the digital spends data ensures to offer the best products and services in the market. In fact, the company is making staunch developments in technology and product domain to serve its customers better. “Convenient and easy to use on boarding tools like Sales App equipped with e-sign feature have helped us make the process from Loan application to disbursal, smooth and efficient,” says PK.

"NeoGrowth Credit has partnered with over 13,000 businesses and has 21 branches in various cities spread across the country"

A Game Changer
As an NBFC registered with RBI, NeoGrowth is known to drive digitalization in the SME lending space by pioneering the concept of POS based funding. Its business model operates at the convergence of lending, urban retail and digital payments, on a platform of technology and innovation. “When working closely with retailers, we realized their problems in terms of accessing finance. More than 50 percent of these retailers with adequate credit-worthiness were denied finance based on traditional underwriting methods.We intend to fill this gap at NeoGrowth,” informs PK.

Ensuring a smooth operation of the business for its clients, NeoGrowth evaluates a borrower on the basis of digital spends occurring on POS machines at
his/her outlet. With its tech enabled underwriting, the company provides customer loans to various merchants as per their industry segments ranging from food&beverage, apparel, beauty & wellness, petrol pumps, automobile dealerships, amongst others.

“We are rightly in a position to keep our loan disbursal TAT under 72 hours ensuring uninterrupted operation of the business for our clients. We focus heavily on customer delight initiatives resulting into a healthy renewal rate of around 70 percent,” mentions PK.

The Success Saga
Established in 2013, NeoGrowth has lent its hand to merchants and businesses across the SME and MSME sectors for developing innovative products and unconventional methodologies. So far, it has partnered with over 13,000 businesses and has 21 branches in various cities spread across the country.Additionally, it has scaled up disbursements from INR 9 Crore in 2012-13 to INR 1,350 Crore in 2017-18 and has a target of INR 3,300 Crore for the year 2019-20.

NeoGrowth continues to operate as per its strategy of going Deeper, Wider & Newer. “We will continue with our expansion plans into these markets and keep improvising to come up with better solutions to help the SME segment in the best possible manner. In the next 5 years we aim to cross Rs 7000 Crore in AUM; in other words, build a billion-dollar balance sheet,”concludes PK.