IIFL-led investors pump in money
Mumbai, July 4:
IIFL Seed Venture Fund, Accion Frontier Inclusion Fund and three others have invested ₹107.5 crore in fintech start-up NeoGrowth in its latest round of fund-raising.
NeoGrowth, which has raised ₹225 crore till date, helps small- and mid-sized retail enterprises with flexible, innovative loan products that are secured against the retailers’ future credit card and debit sales.
NeoGrowth loan funds typically support retailers’ expansion, renovation, one-time equipment purchases, or large seasonal inventory purchases, a press release from the company said.
Borrowers benefit from the company’s digital approach, flexible repayment terms and minimum credit history requirements. More than 75 per cent of NeoGrowth customers return for a new loan, the release said.
NeoGrowth is promoted by serial entrepreneurs, Dhruv Khaitan and Piyush Khaitan.
This funding round was led by IIFL Asset Management (for the Seed Venture Fund) and co-led by existing investor, Accion Frontier Inclusion Fund, managed by Quona Capital. Other existing investors — Omidyar Network, Aspada Investments and Khosla Impact — also participated in this round.
IIFL Seed Venture Fund was launched last year as a platform to allow high net worth individuals to invest in start-ups. It has raised up to ₹1,000 crore, of which it has invested ₹170 crore.
Source: Start Up Business News