NeoGrowth Credit Pvt. Ltd. has raised Rs. 300 Crores as equity capital from LeapFrog Investments and existing investors Aspada Investment Company and Quona Capital, through Accion Frontier Inclusion Fund.
Avendus Capital was the exclusive financial advisor to NeoGrowth’s equity round.
Financing of small and medium enterprises in the retailer ecosystem is a large under-served opportunity with 85% MSMEs relying on self-finance and financing from non–institutional sources. India has ~6 Mn retailers with a potential financing opportunity of ~INR 3 Tn. NeoGrowth addresses this segment’s requirements using its “data–driven” platform to provide loans to merchants against their future card sales. The emphasis on analytics driven underwriting and technology enabled repayment has helped NeoGrowth achieve scale and expand its customer base across India. Growth in digital payments and GST implementation are expected to further increase the addressable market by making more data available.
The Avendus Group (Avendus) is a leading provider of financial services with an emphasis on customized solutions in the areas of Investment Banking, Wealth Management, Structured Credit Solutions and Alternative Assets Management. Avendus relies on its extensive experience, in-depth domain understanding and knowledge of the regulatory environment, to offer customized solutions that enable clients to meet their strategic aspirations. Avendus Capital has consistently been ranked among the leading financial advisors by overall number of deals. It has a strong track record of cross-border transactions and has helped multiple clients benefit from opportunities across geographies. Avendus’s wide range of clients is testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle.