FY2024: Neogrowth Provides More Than Inr 650 Crore to MSMEs Owned by Women

Nitin Konde, Apoorva Bajj

Aug 29, 2024 — 3 min read

FY2024: Neogrowth Provides More Than Inr 650 Crore to MSMEs Owned by Women

NeoGrowth, an online lender in India that specializes in MSMEs, has gone a long way toward empowering female business owners. More than INR 650 crore in loans were distributed to micro, small, and medium-sized enterprises (MSMEs) managed by women in the fiscal year 2024.

The result shows a significant 34% rise compared to the previous fiscal year, which underscores the increasing demand for financial inclusion for women entrepreneurs and NeoGrowth's dedication to meeting that demand. This sum accounts for 23 percent of NeoGrowth's total loan disbursements for fiscal year 2024, which were INR 2,863 crore.

Effect on MSMEs Run by Women

Over 3,600 micro, small, and medium-sized enterprises (MSMEs) that are run by women profited from these business loans, as stated in the NeoGrowth Impact Report 2024.

The organization asserts that it provided services to a customer base that numbered more than 16,000 throughout the fiscal year. The corporation acknowledges that women-owned enterprises have played an essential part in the company's broader purpose of promoting an inclusive economy.

Sustainable Development Goals

This broader commitment to contributing to societal and environmental progress is shown in the fact that NeoGrowth's commercial activities are aligned with six of the Sustainable Development Goals (SDGs) put forth by the United Nations.

Particular attention has been paid by the organization to important Sustainable Development Goals (SDGs), such as Gender Equality, Industry, Innovation, Infrastructure, and Decent Work and Economic Growth.

In addition to contributing to broader societal and environmental goals, the strategy of NeoGrowth is aimed to ensure that its credit solutions contribute to the growth of India's micro, small, and medium-sized enterprises (MSMEs).

This all-encompassing strategy guarantees that every loan that is provided will have a good domino effect, resulting in the development of new jobs, improvements in credit scores, and increased opportunities for female entrepreneurs.

Growth Strategies

Additionally, the company achieved considerable progress in assisting micro, small, and medium-sized enterprises (MSMEs) in Tier-II cities by disbursing close to INR 835 crore in these areas. Furthermore, emerging small firms that have been in operation for five years or less were the recipients of 41% of the total loans that NeoGrowth has advanced up to this point.

NeoGrowth is committed to supporting entrepreneurs who are frequently ignored by established financial institutions, as seen by the fact that the company focuses on newer enterprises and regions that offer inadequate services.

It was emphasized by Arun Nayyar, the Managing Director and Chief Executive Officer of NeoGrowth, that the company's objective is to establish a sustainable, inclusive, and purpose-driven ecosystem for micro, small, and medium-sized enterprises (MSMEs) in India. The organization's consistent dedication to developing financial inclusion, empowering first-generation entrepreneurs, and providing support to firms run by women all contribute to the development of an economy that is both vibrant and inclusive.

In addition to catering to more than 75 different MSME industry segments, NeoGrowth asserts that it has a presence in more than 25 communities. Over $1.4 billion has been distributed by the company since it was first established.