NeoGrowth, a digital lender focused on MSME-focused businesses, has raised debt funding from UTI International Wealth Creator. This is the second cash injection for the Mumbai-based firm in the current calendar year.

The board of NeoGrowth has approved the issuance and allotment of up to 4,200 non-convertible debentures to raise up to Rs. 42 crore.

The annual interest rate for these non-current debt obligations is 11.7% UTI International Wealth Creator 4 is a debt fund managed by Mumbai-based UTI Asset Management Company, which is based in Mumbai.

The cash injection into the company coincides with the company's intention to raise Rs. 500 crore in growth capital through private equity investments. The goal of the firm is too close FY25 with Rs. 4,000 crore AUM, after managing assets worth Rs 2,750 crore by the end of the last fiscal year.

The NBFC Co-Founded by Dhruv Khaitan and Piyush Khaitan, NeoGrowth, offers short-term, secured loans to small and medium-sized enterprises, ranging from Rs. 75 lakh to a maximum of 100 months.

Over the years, MicroVest, FMO, Omidyar Network, DFC, and others are some of the investors that have helped the company raise around $138 million so far.

Financially, the gross revenue of NeoGrowth grew by 57% in the fiscal year ending March 2024, up from Rs. 381 crore in FY23. The company's profit after tax jumped almost four times to Rs 95 crore in the last fiscal year, up from Rs. 24 crore in FY23.