“Doing the same thing repeatedly while expecting a different outcome is the most basic thing one can do.” This saying can be applied to the way business owners have historically approached funding. For decades, people depended on traditional banking institutions when they were in need of financing. Since it was the only option, many hopeful entrepreneurs went through the lengthy application process all while knowing they would be in for a time-consuming process that may result in them not getting the necessary financial assistance.
Technology is changing every single industry, and lending is no exception. While lending used to be the exclusive purview of banks and credit unions, numerous fintech companies are now extending loans to consumers and small business owners, and their practices are changing the loan process.
One such fintech company is NeoGrowth Credit, a pioneer in lending based on the underwriting of digital payments data. The Company offers unsecured loans to merchants who accept card or other digital payments from customers using its proprietary technology platform. NeoGrowth loans are a short tenor, hassle-free loans with the facility of daily repayment, a key customer delight factor.
At the heart of the NeoGrowth business strategy is a mission to have a positive social impact on the financial lives of small and medium business merchants across India, more than 50% of whom are creditworthy but until now have been excluded from accessing loans based on traditional underwriting methods. Addressing this gap in the market is the basis on which the NeoGrowth business has been built.
The company caters to this under-served market by adopting an innovative approach and validating the creditworthiness of the business. They do so by looking at current business performance and stability. Currently, they have helped over 15,000 business merchants to grow their businesses. Their tech-enabled processes and smart analytics ensure that NeoGrowth offers the best products and services in the market. Their in-house technology platform is tailored to meet the unique requirements of NeoGrowth’s innovative loan products. Headquartered in Mumbai, NeoGrowth started its commercial operations in 2012-13 and is now present in 21 major cities of India.
The Dynamic Duo
Brothers Dhruv Khaitan(DK) and Piyush Khaitan(PK), Co-founders of NeoGrowth, together have founded and managed many touch and tech-based companies to serve the SME segment. They have leveraged their broad experience in technology, understanding of the retail finance sector along with their intense entrepreneurial skills to bring about a revolution in the fintech sector.
Innovative Services and Products
NeoGrowth offers its signature product “NeoCash” to various merchants across India and helps them grow their business by providing much needed financial help in a hassle-free manner.
At present, NeoGrowth offers loans from INR 5 Lakhs to INR 1.5 Crores. These loans are given based on the payment card swipes happening at merchant’s outlet. With an in-house technology platform, that is tailored to meet the unique requirements of NeoGrowth’s innovative loan products. NeoGrowth relies on analytics-driven underwriting and its unique tech & touch model to serve the SME market in India. Key industry segments that they give a loan to are: Food & Beverage, Apparel, Petrol Pumps, Groceries, Clinics & Lab, Automobile, Dealerships, CDIT, Pharmacy, Hotels, Spa & Salon, Footwear, Home Appliances, and Opticians.
Alternate sources of digital data also play a crucial role in the underwriting process of NeoGrowth loan. These short-term loans have a vital advantage in the form of the Automatic Repayments offered over a conventional loan. This small feature helps the merchants to better plan their cash flows especially taking into consideration slow and offseasons.
NeoGrowth has Empowerment, Accountability, Teamwork, Result Orientation, Integrity Policy, Work-Life Balance, Customer Orientation, Innovation, Trust, and Openness as its fundamental values All their products, processes and services are built around these values, and they proudly adhere to it. This is what makes them unique in the competitive marketplace. At NeoGrowth, they genuinely believe that they have created a product, which serves the need of businesses in India and they aim to bring a positive social impact in the under-served SME market segment in India.