NeoGrowth, a prominent digital lender in India, has declared its financial results for the third quarter ending December 31, 2023, showcasing a remarkable growth streak. The company’s focus on Micro, Small, and Medium Enterprises (MSMEs) has yielded substantial gains, with a 51 per cent surge in Assets Under Management (AUM) to INR 2,456 crore compared to INR 1,629 crore in the corresponding period last year.
In the performance highlights of Q3 FY24, NeoGrowth reported a 39 per cent increase in disbursements, reaching INR 672 crore, and a substantial 67 per cent growth in gross revenue, totaling INR 160 crore. The Return on Equity (ROE) stood at an impressive 13.19 per cent, underlining the company’s strong financial performance. The Return on Assets (ROA) was reported at 3.68 per cent, reflecting operational efficiency. Furthermore, Profit Before Tax (PBT) surged to INR 28 crore in Q3 FY24, demonstrating a substantial year-on-year increase of 1302 per cent.
For the nine-month period from April to December 2023, PBT stood at INR 67 crore. NeoGrowth’s commitment to financial stability is evident in the low Net Non-Performing Assets (NNPAs) at 1.42 per cent and a robust Capital Adequacy (CRAR) of 30.69 per cent, exceeding the regulatory requirement of 15 per cent.
Mr. Arun Nayyar, Managing Director & CEO, NeoGrowth, said: “Our robust performance in Q3 FY24 is fuelled by our innovative product offerings, deep understanding of the customer segment and strong digital lending capabilities. By combining Digital Public Infrastructure with data science and analytics, we continue to enhance our customer selection and risk management processes. We not only aim to empower countless small businesses nationwide but also constantly strive to simplify lending across the value chain for MSMEs.”
In addition to the quantitative achievements, NeoGrowth’s credit rating has been upgraded by ICRA to [ICRA]BBB+ from [ICRA]BBB, further affirming the company’s financial strength and stability.
Beyond the numerical metrics, NeoGrowth follows a flow-based lending model, analyzing digital financial transactions of MSMEs to assess creditworthiness. The company leverages India’s expanding digital payments ecosystem along with its robust data and analytics capabilities. The success is driven by a holistic product suite, data-driven underwriting model, and engagement with over 150,000 MSMEs across 75+ diverse industries and 25+ locations, amounting to more than INR 11,000 crore in loans disbursed.
NeoGrowth’s impressive growth story is complemented by the backing of esteemed investors, including Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, 360 One Asset, FMO, and Leapfrog Investments. As the company continues its growth trajectory, it remains dedicated to empowering small businesses and simplifying lending for MSMEs across the country.
