NeoGrowth Raises ₹85 Cr for MSME Lending Growth

NeoGrowth, a digital lender focused on small and medium-sized enterprises (MSMEs), has successfully closed a significant funding round, securing ₹85 crore. The capital infusion was a collaborative effort, with contributions from the Dutch development finance institution FMO and existing investor LeapFrog Investments. This strategic financing is earmarked to bolster NeoGrowth's loan book, aiming for a substantial expansion to nearly ₹3,000 crore before requiring further equity injections.

Established in 2011 by brothers Dhruv Khaitan and Piyush Khaitan, NeoGrowth has carved a niche in the Indian fintech sector by offering alternative credit assessment methods. Unlike traditional lenders, the Mumbai-based company leverages digital payment data and cash flow analysis, moving beyond a sole reliance on collateral. This innovative approach has enabled NeoGrowth to serve a broad client base, now exceeding 100,000 businesses across more than 25 cities, underscoring the growing demand for accessible financing solutions for India's vital MSME segment.

The MSME lending sector in India is a critical engine for economic growth, contributing significantly to GDP and employment. However, access to timely and adequate credit remains a persistent challenge for many small businesses. NeoGrowth's model directly addresses this gap, and this latest funding round signals strong investor confidence in its disruptive strategy and its potential to scale effectively within this dynamic market. The infusion of capital from development finance and private equity players highlights the increasing recognition of fintech's role in financial inclusion.

In a separate development within the consumer sector, ethnic menswear brand KISAH has raised ₹35.9 crore in a Series A funding round. This round was led by Fireside Ventures, valuing the company at ₹211 crore post-money. KISAH intends to deploy these funds to expand its physical retail footprint, enhance its supply chain infrastructure, and invest in technological advancements to streamline operations and customer experience. The brand currently operates through online marketplaces like Myntra, Amazon, and AJIO, its own e-commerce platform, and 12 physical stores, with ambitious plans to grow to 100 outlets.

KISAH's revenue reached ₹65 crore in the fiscal year 2026, indicating a solid foundation for its expansion plans. The ethnic wear market in India, particularly for occasion and festive wear, continues to show robust growth, driven by cultural preferences and increasing disposable incomes. Fireside Ventures' investment in KISAH aligns with a broader trend of venture capital backing brands that can effectively blend traditional aesthetics with modern retail strategies, both online and offline.

Beyond these funding announcements, the broader Indian business news included updates from major corporations. TCS reported a 4% increase in its Q2 FY27 net profit, reaching ₹13,884 crore, with revenues climbing to ₹73,188 crore. The IT giant also highlighted its growing AI revenue, which surpassed $3.1 billion, representing over 10% of its total income. Additionally, NABVENTURES, the venture capital arm of NABARD, announced the first close of its second fund at ₹450 crore, targeting ₹1,500 crore to invest in agritech, rural fintech, and climate solutions.