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What Was The Rationale Behind Launching NeoGrowth? What Market Gaps Are You Trying To Fill?
Prior to NeoGrowth, we had a digital payments processing business – Venture Infotek, which we later sold to a European multinational in 2010. It is during these years, where working closely with retailers, we realized their pain points in terms of accessing finance. More than 50% of these retailers, though credit-worthy, were denied finance based on traditional underwriting methods.
It is this gap that we aim to bridge with NeoGrowth. Our tech & touch model along with our Customer Centric business philosophy are the key attributes which have helped us emerge as market leaders.
How has your experience been with providing unsecured loans to small merchants? What’s your delinquency rate?
We understood early on the importance of understanding consumer behaviour. We took that as a guiding light for our product & technology development and that is evident from our product features like the daily repayment facility instead of a monthly EMI. Also, NeoGrowth focusses heavily on customer delight initiatives as they are our true brand ambassadors. We have a healthy renewal rate of around 70%. Our default rates are around 3%.
In short, what’s your growth plan for the next five years?
Having pioneered the Digital Lending in India, we are operating as per our Strategy of Deeper, Wider & Newer. We have offices in top 21 cities of the country, where we envision the best growth for acceptance of Digital payments. We will continue to expand into these markets and keep improvising and will come up with better solutions to help the SME segment.
Also, it is extremely important that the loans we give, cause a positive social impact, helping in job creation, women empowerment, development of SME’s, and we measure our success by the Social impact caused by us.
In the next 5 years we aim to cross Rs 7000 Cr in AUM; in other words, build a billion dollar balance sheet.
To read the full interview, click here.
NeoGrowth’s advertisement was recently published in AHAR Connect (July edition) – A publication of Indian Hotel & Restaurant Association.