NeoGrowth, a digital lender in India, has significantly supported women-run MSMEs by disbursing over Rs 650 crore in loans in 2024, a 34 per cent increase from the previous year. This initiative, which represents 23 per cent of NeoGrowth’s total loan disbursements, aims to enhance financial inclusion by providing easier access to credit for women entrepreneurs in sectors like retail, healthcare, and education.
The firm provides financial support and advisory services to women entrepreneurs and women-owned MSMEs , boosting their business growth and contributing to economic empowerment. Focusing on women-run MSMEs bridges the gender gap in entrepreneurship and fosters a more inclusive economic landscape promoting gender equality. The NeoGrowth Impact Report 2024 shows over 3,600 women-owned MSMEs received business loans, serving over 16,000 customers, highlighting their crucial role in fostering an inclusive economy.
NeoGrowth aligns its business activities with six UN Sustainable Development Goals, focusing on Gender Equality, Industry, Innovation, and Decent Work. Its credit solutions support India’s MSME growth, promotion of job creation, improved credit scores, and female entrepreneurship.
NeoGrowth Supports Women MSMEs with INR 650 Crore in Loans
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.
As India charts its course towards becoming a developed nation by 2047, the role of Micro, Small, and Medium Enterprises (MSMEs) is pivotal. Recognizing this, the Indian government has launched several impactful schemes to empower MSMEs, driving innovation, sustainability, and global competitiveness. Initiatives such as the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and the Zero Defect, Zero Effect (ZED) Certification Scheme are not only providing financial support but are also encouraging quality manufacturing and technological advancement. These schemes are designed to enhance productivity, expand market reach, and ensure that MSMEs play a central role in transforming India into a developed economy by its 100th year of independence.
Prime Minister Narendra Modi envisions the MSME sector as a backbone of India’s economic growth and a key driver of employment generation. Recognising the vital role of MSMEs in contributing to the GDP, fostering innovation, and creating jobs, Modi’s vision emphasises making MSMEs globally competitive through the adoption of technology, ease of doing business, and increased access to finance. The Modi government has introduced numerous initiatives, such as the Digital India campaign and the Make in India program, specifically targeting MSMEs to enhance their productivity and market reach. Modi’s vision also includes promoting self-reliance among MSMEs by reducing dependence on imports, thereby boosting domestic manufacturing capabilities. By ensuring simplified compliance, encouraging digital transformation, and providing various support schemes, Prime Minister Modi aims to strengthen the MSME sector, enabling it to be a powerful pillar in India’s journey towards becoming a $5 trillion economy.
FAQs
What is NeoGrowth?
NeoGrowth is a digital lender in India that offers loans to Micro, Small, and Medium Enterprises (MSMEs). It focuses on helping businesses access fast and flexible financial solutions, particularly those underserved by traditional banking systems.
What types of businesses are eligible for NeoGrowth loans?
NeoGrowth provides loans to a wide range of MSMEs, including retail businesses, restaurants, healthcare providers, and educational institutions. Women entrepreneurs in these sectors can benefit from the funding.