Today, NeoGrowth announces the close of its third round of equity capital, a testament to our recent growth and unique position as India’s leading lender in the rapidly expanding Merchant Business Advance market. Silicon Valley-based Khosla Impact, Vinod Khosla’s personal investment fund led the round, with participation from existing investors Omidyar Network and Aspada. The capital will allow NeoGrowth to further expand its asset book and make important investments in new products and platform technologies. Vinod Khosla, serial entrepreneur, founder of Khosla Impact and Khosla Ventures, which has also invested in leading financial technology companies such as OnDeck Capital and Square had this to say, “Technology-based companies are changing the way banking works around the world. The new models for measuring risk are being built now, and NeoGrowth is leading that effort in India for the broadest base of merchants. We are pleased to back this experienced and high quality team as they accelerate towards scale.” Welcoming Khosla Impact as an investor, Dhruv Khaitan, Chairman of NeoGrowth said, “Our Company is focused on having best-in-class digital lending capabilities to provide convenient, flexible credit products to its customers. We are pleased to be in apositiontoattractglobalexpertiseandcapitalandwelook forwardleveragingournewrelationships inSiliconValley tothisend.” NeoGrowth has developed a new category of small business lending in India by offering retailers, restaurants and more recently, e-commerce sellers, a set of innovative loan products with repayment terms that adjust based on a business’s daily cash flows and collection methods that are integrated directly into a merchant’s point-of-sale (POS) system. In doing this, NeoGrowth acts as a business accelerator to its customers, making small businesses loans more flexible and convenient. NeoGrowth also offers its brick and mortar retail clients secure ePayments and CRM tools for them to stay in touch with their customers. For e-commerce sellers, NeoGrowth provides cash advances to merchants selling through online marketplaces, with the majority of those loans disbursed to first generation entrepreneurs. NeoGrowth enjoys a privileged position that allows it to create a proprietary risk score for each borrower based on recent transaction history. This has enabled the Company to disburse loans to many applicants that were previously considered “default grade”. In addition to expanding their businesses, NeoGrowth advances can help these borrowers improve their credit profile.
C.V. Madhukar and Mark Straub join NeoGrowth’s board.
C.V. Madhukar, Director of Investments at Omidyar Network was the co-founder and director of PRS Legislative Research in New Delhi. Madhukar has worked with The World Bank in Washington D.C., and was elected as a Young Global Leader by the World Economic Forum. He has earned a masters degree in public administration from the John F. Kennedy School of Government at Harvard University where he was an Edward S. Manson fellow.
NeoGrowth also welcomes Mark Straub, the co-founder of Khosla Impact, on the NeoGrowth Board of Directors. Mark brings a unique combination of global technology investing experience from his time with Draper Fisher Jurvetson in the US and a deep background in Indian financial services from his work with Lok Capital in New Delhi. He leads Khosla Impact’s work in digital financial services and carries a B.Sc. from the McIntire School of Commerce at the University of Virginia.