NeoGrowth’s Profit rises to INR 95 Crore in FY24

NeoGrowth

NeoGrowth, India’s leading MSME-focused digital lender, has unveiled its financial results for the fiscal year 2024 and the fourth quarter ending March 31, 2024, showcasing significant growth and solid financial performance.

FY24 Performance Highlights

  • Gross Revenue: Increased by 57%, reaching INR 601 crore.
  • Profit Before Tax (PBT): Soared to INR 95 crore, a 300% surge from INR 24 crore in FY23.
  • Return on Equity (ROE): Stood at 11.5%.
  • Return on Assets (ROA): Reached 3.3%.
  • Operating Costs to Net Revenue: Improved to 37%.
  • Net Non-Performing Assets (NNPAs): Maintained at 1.6%.
  • Asset Under Management (AUM): Totaled INR 2,750 crore.
  • Disbursements: Grew to INR 2,864 crore.

Q4 FY24 Performance Highlights

  • Profit Before Tax: Grew by 113% to INR 28 crore.
  • Return on Equity (ROE): Increased to 12.8%.
  • Return on Assets (ROA): Rose to 3.4%.
  • Operating Costs to Net Revenue: Improved to 34%.
  • Disbursements: Reached INR 867 crore.

Speaking on this development, Mr. Arun Nayyar, Managing Director & CEO of NeoGrowth, commented, “Our focus on serving the growing MSME segment with efficient financial solutions has driven our stellar performance in FY24. We are pleased to report a profit increase to INR 95 crore and an upgrade in our ICRA rating from BBB to BBB+, reflecting the trust of our customers and the effectiveness of our lending processes. Our commitment to leveraging digital infrastructure to enhance customer experience and operational efficiency remains steadfast.”

NeoGrowth’s robust business model, driven by data and analytics, ensures optimal risk-reward balance and objective decision-making. The company’s innovative flow-based lending model, tailored to the digital payments of MSMEs, enables quick and flexible loan disbursals, particularly benefiting MSMEs with urgent funding needs.

Since its inception, NeoGrowth has disbursed over USD 1.5 billion across 55,000+ customers, aligning its operations with six of the United Nations Sustainable Development Goals (SDGs), showcasing its dedication to financial inclusion and sustainable development.

Also Read | NeoGrowth’s Data-Driven Approach Propels MSMEs Digital Future

NeoGrowth’s success is backed by esteemed investors including Omidyar Network, Lightrock, Khosla Impact, Accion Frontier Inclusion Fund – Quona Capital, 360 One Asset, FMO, and Leapfrog Investments.

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