NeoGrowth raises ₹85 crore to scale MSME digital lending
The capital will expand the company’s loan book to nearly ₹3,000 crore, Inc42 reported.
NeoGrowth specializes in short-term working-capital loans to merchants and small retailers, underwriting based on point-of-sale and digital transaction data rather than traditional credit scores. The latest round follows an equity raise covered in October 2026, when the same investors participated at a similar ticket size. The company has seen continued backing from these investors in recent months.
The funding arrives as the broader digital lending sector shows mixed signals. PhysicsWallah exited its lending subsidiary last week, offloading a ₹96 crore loan book to Auxilo Finserve, while Easy Platform turned profitable in FY26 after years of losses. The ability to secure capital may reflect investor confidence in models targeting underserved segments, even as some players scale back or shift strategies.
What remains unanswered is whether NeoGrowth can sustain its growth trajectory without compromising underwriting discipline. The company’s loan book has expanded significantly in recent years, and any rise in delinquencies could test investor patience. For now, the round underscores the potential for niche lenders with strong data-driven approaches to attract funding in India’s competitive fintech landscape.
Sources: inc42.com
“The round signals sustained investor appetite for niche digital lenders serving India’s credit-starved micro and small businesses.”
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