<article>Digital financial lender <a href="http://dealstreetasia.com/tag/neogrowth" target="_blank" rel="noopener">NeoGrowth Credit Pvt Ltd</a> has raised Rs 300 crore ($47 million) in a funding round led by UK-based equity investor <a href="http://dealstreetasia.com/tag/leapfrog" target="_blank" rel="noopener">LeapFrog Investments</a>.</article>

Digital financial lender <a href="http://dealstreetasia.com/tag/neogrowth" target="_blank" rel="noopener">NeoGrowth Credit Pvt Ltd</a> has raised Rs 300 crore ($47 million) in a funding round led by UK-based equity investor <a href="http://dealstreetasia.com/tag/leapfrog" target="_blank" rel="noopener">LeapFrog Investments</a>.
According to an official statement, existing investors <a href="http://dealstreetasia.com/tag/aspada" target="_blank" rel="noopener">Aspada Investment Company</a> and <a href="http://dealstreetasia.com/tag/quona-capital" target="_blank" rel="noopener">Quona Capital</a> also participated in the round.
&#8220;With the investment, NeoGrowth plans to capitalise on its market-leading technology to significantly expand lending to small business owners, reaching deeper into India’s largest cities, and expand to other urban areas,&#8221; the company said in its statement.
Under the terms of the investment, Michael Fernandes, Partner at LeapFrog, will join NeoGrowth’s Board of Directors.
In July 2016, the fintech startup had raised $35 million in equity from IIFL Asset Management and existing investors, including Accion Frontier Inclusion Fund managed by Quona Capital.
In April 2015, NeoGrowth raised an undisclosed amount of funding led by Silicon Valley-based social venture investor Khosla Impact. Prior to that in 2013, investment firm Omidyar had picked up 29 per cent stake in NeoGrowth.
Using a data and technology-driven approach, NeoGrowth provides small and mid-sized retail enterprises with loan products that are secured against retailers’ future credit card and debit sales.
“India is at an inflexion point as the rise of cashless financial services, harnessing big data, transforms the lives of millions of emerging consumers,&#8221; Michael Fernandes, Partner at LeapFrog, said.
“NeoGrowth is at the forefront of this transformation. By providing loans to underserved merchants against their future digital sales, it unlocks credit that is tailored to their business requirements, which in turn inspires growth and job creation,&#8221; he added.
With the government&#8217;s push for digital finance, the digital lending space has been witnessing intense competition, as companies like CreditMate, CASHe, LendingKart, MoneyTap, EarlySalary, Faircent and LoanMeet compete for market share.
In December, Delhi-based Usha Financial Services Pvt. Ltd, which operates online microlending platform Cash Suvidha, had raised an institutional debt of $2.7 million from six financial institutions. Prior to that, One97 Communication Ltd, parent company of Paytm, had acquired a stake in CreditMate.
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NeoGrowth said it will use the proceeds to expand its lending services deeper into India’s largest cities and other urban areas.

India: Fintech firm NeoGrowth raises $47m funding round led by LeapFrog

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India: Fintech firm NeoGrowth raises $47m funding round led by LeapFrog

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