Debt

Debt financing

MSME-focused digital lender NeoGrowth raises Rs.42-Cr from UTI International

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Mumbai-based MSME-focused digital lender NeoGrowth, a non-banking financial company (NBFC), has raised debt funding from UTI International Wealth Creator. NeoGrowth will allot 4,200 non-convertible debentures (NCDs) to raise INR 42 crore (approx USD 5 million). These NCDs will carry an interest rate of 11.7% per annum. UTI International Wealth Creator 4 is a debt fund managed by UTI Asset Management Company.The firm managed assets worth INR 2,750 crore by the end of the last fiscal year, and aims to close FY25 with INR 4,000 crore AUM.NeoGrowth, co-founded by Dhruv Khaitan and Piyush Khaitan, offers short-term unsecured loans to MSMEs, providing amounts of up to INR 75 lakh with a tenure of up to 100 months. To date, the company has raised approximately USD 138 million through a mix of equity and debt funding from investors including MicroVest, FMO, Omidyar Network and DFC.