IIFL, Accion lead round for Indian fintech startup NeoGrowth

The round brings the total raised by NeoGrowth since its founding to $35 million, according to a release. Existing investors Omidyar Network, Aspada Investments, and Khosla Impact also participated in the round. All three, and Accion, also participated in NeoGrowth's previous $7 million funding round in 2015, according to AVCJ Research.

NeoGrowth targets small and medium-sized retail enterprises in India, which often have trouble obtaining credit due to a lack of sufficient credit history. It provides customers with loans that are secured against their future credit card and debit sales, offering more flexibility than traditional banks' credit products.

The company will use the new capital to build its loan book, while improving its supporting technology and expanding brand awareness and distribution.

"We are confident of NeoGrowth's business model as it taps into a hitherto untapped credit-worthy market," said IIFL CEO Prashasta Seth. "Their technology advantage in seamlessly integrating operations and reaching a wider audience at a competitive cost will rapidly accelerate growth in the coming years. As a lead investor, we are happy to invest in companies like these which, along with their corporate goals, actively participate in financial inclusion."

IIFL Asset Management, a division of IIFL Wealth Management, made its investment through its IIFL Seed Venture Fund. The fund launched last year with a target of INR10 billion ($153 million). While IIFL Seed Venture is sector-agnostic, the firm expects to focus on companies offering disruptive opportunities in domestic consumption, particularly technology and logistics.

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• Topics
• South Asia
• Financials
• Technology
• Early-stage
• Venture
• India
• TMT
• seed
• IIFL Wealth Managment
• Aspada Investments
• Khosla Ventures