[VCCircle] NeoGrowth Raises $20 Mn From DFC Via ECBs
NeoGrowth Credit Pvt. Ltd, a small and medium enterprises-focused fintech lender, has secured $20 million (around Rs 160 crore) from the United States International Development Finance Corporation (DFC) via the external commercial borrowing (ECB) route.
The funding commitment is for 5 years with a 2-year moratorium on principal payment and will be used for onward lending to SME customers as per ECB guidelines, according to a statement.
“NeoGrowth is funding India’s small businesses by leveraging the digital ecosystem, and this backing from DFC will help us drive that mission further while also creating a positive impact on SMEs. We will be using these funds to further extend credit to our customers to propel their business growth,” said Arun Nayyar, whole-time director and chief executive officer.