NeoGrowth Secures ₹85 Cr to Boost Digital Lending for MSMEs

NeoGrowth, a lending platform focused on micro, small, and medium enterprises (MSMEs), has successfully raised ₹85 crore (approximately $8.8 million) in a mix of debt and equity financing. This funding round was announced on October 9, 2026, and is led by the Dutch development bank FMO, with participation from LeapFrog Investments.

The investment comes at a crucial time as digital lenders are increasingly targeting MSMEs, which are often underserved in terms of access to formal credit despite being a significant contributor to employment in India. NeoGrowth has already made its mark in the market by managing nearly ₹2,000 crore in assets under management (AUM), engaging with over 400,000 businesses, and disbursing more than ₹16,000 crore in loans to date.

With this fresh capital, NeoGrowth plans to expand its digital lending capabilities, thereby improving the financial accessibility for MSMEs which typically face challenges in obtaining loans from traditional banks. By enhancing their digital infrastructure, NeoGrowth aims to streamline the lending process and better serve the needs of these small businesses, which play a vital role in the Indian economy. The competitive landscape for digital lending is intensifying, and this funding will bolster NeoGrowth’s position as a key player in the MSME lending space.