# MSME-focused digital lender NeoGrowth raises Rs 85 Cr from FMO, LeapFrog — retained record

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source: [news](https://highsignal.app/data/news) (news:india-entrackr)  published 2026-10-09 03:42 ingested 2026-10-10 02:50

[original source ↗](https://entrackr.com/news/msme-focused-digital-lender-neogrowth-raises-rs-85-cr-from-fmo-leapfrog-12658698)

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NeoGrowth, an MSME-focused digital lender, has raised Rs 85 crore through a mix of equity and debt from Dutch development finance institution FMO and existing investor LeapFrog Investments.
The Mumbai-based company had previously raised Rs 300 crore ($36 million) in a Series D equity round in December 2022, led by FMO along with existing investors.
The latest proceeds will be used to grow its loan book to nearly Rs 3,000 crore before the company requires another equity infusion, NeoGrowth said in a press release.
Co-founded in 2011 by Dhruv Khaitan and Piyush Khaitan, NeoGrowth provides business loans tailored to the needs of small businesses. Its offerings include both collateral-free and collateral-based loans for micro, small and medium enterprises (MSMEs).
The company uses technology and data analytics to assess borrowers based on digital payment data, point-of-sale (POS) transactions and cash flows rather than relying solely on traditional collateral. It also offers flexible repayment schedules, with daily, weekly, fortnightly and monthly collection options.
NeoGrowth claims to operate in more than 25 cities across India, serving over 80 business segments and more than 1 lakh businesses.
Digital lenders are increasingly using GST records, banking transactions, digital payment trails and other business data to assess creditworthiness and extend loans to kirana stores, manufacturers, traders, distributors and small service providers.
The segment has attracted investor interest as lenders target underserved MSMEs through supply chain financing and embedded credit solutions.
Recent funding activity reflects this trend. In February 2026, Prayaan Capital raised Rs 110 crore in a Series A round led by Peak XV Partners to build its technology-led MSME lending platform. In August 2026, GetVantage secured Rs 63 crore in Series A1 funding to scale its cash flow-based financing platform for businesses.
Meanwhile, Business Nextgen Finance raised Rs 215 crore in equity to expand its technology-enabled secured lending operations for underserved MSMEs. Other notable fundraises include FlexiLoans, which raised Rs 375 crore in a Series C round in June 2025, and Techfino, which secured Rs 65 crore in June 2025 to expand its technology-enabled lending business in smaller cities.
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