NeoGrowth is an innovative niche player in the Indian financial sector. The company solely focuses on micro, small and medium-sized enterprises (MSME), specifically merchants and retailers. The MSME sector plays an important role in the growth of the economy. NeoGrowth uses a so-called Merchant Cash Advance (MCA) model to target these enterprises. In brief: it provides credit to retail merchants in exchange for an agreed upon percentage of future credit card and/or debit card sales. Merchants repay their loan on a daily basis depending on the turnover of their credit/debit card sales.
NeoGrowth plays a vital role for their clients as most of them have no or limited alternatives to access credit and thus expand their businesses. The company is headquartered in Mumbai and operates from six branches located in the major cities across India: Delhi, Bangalore, Pune, Hyderabad and Chennai.
Triodos Microfinance Fund and Triodos Fair Share Fund have provided a loan to NeoGrowth to further realise its growth ambitions. The loan solidifies the funds’ SME strategy in emerging markets.