MICROCAPITAL BRIEF: India-based NeoGrowth Raises $1.7m from Aspada Investment Company

NeoGrowth Credit, an Indian non-bank financial company that makes working capital and inventory loans to small and medium-sized enterprises (SMEs) in the country, recently announced that it has raised INR 100 million (USD 1.7 million) from Aspada Investment Company, an Indian investor in early-stage businesses that target low-income consumers. The financial terms of the transaction have not been disclosed.

NeoGrowth operates three branches in the Indian cities of Bengaluru, Delhi and Mumbai. The company does not report to the US-based nonprofit Microfinance Information Exchange, and financial data on the firm are not otherwise available. Aspada makes early-stage investments in SMEs that have annual revenue between USD 500,000 and USD 5 million. Financial information on the firm is not available, but it has received support from the US-based, nonprofit Soros Economic Development Fund.

By A’kos Szebeni, Research Associate

About NeoGrowth Credit (NeoGrowth)

Founded in 2005, NeoGrowth Credit (NeoGrowth) is an Indian non-bank financial company based in the city of Mumbai, with two additional branches in Bengaluru and Delhi. The company offers working capital and inventory loans to small and medium-sized enterprises (SMEs) operating in various sectors, including apparel, consumer durables, electronics, footwear, groceries, restaurants and healthcare. NeoGrowth is registered with the Reserve Bank of India (RBI) and does not accept deposits. Financial data on the firm are not available.

About Aspada Investment Company (Aspada)

Aspada Investment Company (Aspada) is an India-based investor in early-stage small and medium-sized enterprises (SMEs) that target low-income consumers in the healthcare, agriculture, logistics, education and utilities sectors. The company has received financial support from the US-based nonprofit Soros Economic Development Fund (SEDF) and aims to “…promote economic opportunity and development in India.” Aspada typically invests in companies that have revenues between USD 500,000 and USD 5 million per year. Financial data on the firm are not available.

Sources and Additional Resources:

Aspada Press Release, “Aspada Investment Company Invests in NeoGrowth Credit to Provide Financing that Supports Small Businesses in India,” http://www.aspadaadvisors.com/news.html#

MicroCapital, April 4, 2014, “India-based Five Star Borrows from Matrix to Expand Branch Network, Increase Lending to Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-india-based-five-star-borrows-from-matrix-to-expand-branch-network-increase-lending-to-micro-small-medium-sized-enterprises-msmes/

MicroCapital, March 18, 2014, “Grama Vidiyal Microfinance of India Borrows from World Business Capital,” https://www.microcapital.org/microcapital-brief-grama-vidiyal-microfinance-of-india-borrows-from-world-business-capital/

MicroCapital, June 13, 2012, “Incofin Investment Management Invests $2.4m in Equity in Indian Annapurna Microfinance,” https://www.microcapital.org/incofin-investment-management-invests-2-4m-in-equity-in-indian-annapurna-microfinance/

MicroCapital, May 5, 2011, “Investor in Microfinance, Education, Health, Infrastructure, Matrix Partners India Raises $300m,” https://www.microcapital.org/microcapital-brief-investor-in-microfinance-education-health-infrastructure-matrix-partners-india-raises-300m/

MicroCapital Universe Profile: NeoGrowth Credit (NeoGrowth), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=NeoGrowth+Credit

MicroCapital Universe Profile: Aspada Investment Company (Aspada), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aspada+Investment+Company+%28Aspada%29

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