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.
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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
a position to attract global expertise and capital and we look forward leveraging our new relationships in Silicon Valley to this end."
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.
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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.
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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.
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C.V. Madhukar and Mark Straub join NeoGrowth's board. |
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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.
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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.
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NeoGrowth Credit Pvt Ltd. is a fast growing Non-Banking Finance Company registered with the Reserve Bank of India and is a member of CIBIL. NeoCash, the Smart Merchant
Advance offered by NeoGrowth, is the first of its kind business finance option for Retailers, F&B outlets, Healthcare and Beauty providers amongst a host of other categories,
with unique features. NeoCash is tailor made for merchants accepting card payments, as it has no fixed EMI and allows Automatic Repayment. The product requires Minimum
Documentation, and comes with Doorstep Fulfilment Service.
NeoGrowth has been set up by Dhruv & Piyush Khaitan in 2011, and Omidyar Network, Aspada, and Khosla Impact, have invested in the company. Having piloted the product in
2012, NeoGrowth has launched commercial operations in Bengaluru, Delhi, Mumbai & Pune, and plans to expand to markets across India. NeoGrowth has built AdvanceSuite©,
a sophisticated Merchant Cash Advance platform that enables seamless enterprise wide workflow integration, automated tracking, robust risk management, reporting and
business intelligence capabilities.
NeoGrowth has a valid Certificate of Registration last updated on September 30, 2013 issued by the Reserve Bank of India under section 45-IA of the Reserve Bank of India Act,
1934. However the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of
the statements or representations made or opinion expressed by the company and for repayment of deposits / discharge of liabilities by the company. |
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