Aspada Investment Company has made an investment of Rs 10 crore ($1.62 million) in NeoGrowth Credit, a non-bank financial company (NBFC) that extends short term working capital and inventory loans to small merchants in India against future credit and debit card sales.
Aspada Investment Company has made an investment of Rs 10 crore ($1.62 million) in NeoGrowth Credit, a non-bank financial company (NBFC) that extends short term working capital and inventory loans to small merchants in India against future credit and debit card sales.
“Small businesses are the backbone of the Indian economy, yet there are hundreds of thousands of small merchants in India that are excluded from formal credit and banking channels. Extending transparent, timely and scalable financial offerings to this segment will help to spur business creation in a large market that has had to largely rely on informal sources of capital,” said Piyush Khaitan, Co-Founder and Managing Director, NeoGrowth Credit.
Omidyar Network, during mid-2013 invested Rs 17 crore in NeoGrowth. NeoGrowth’s founders had earlier founded VC-backed electronic payments processing firm Venture Infotek (acquired by AtoS in mid-2010).
“The credit provided by NeoGrowth will allow small firms to manage working capital, account for inventory fluctuations and seasonality, hire additional employees, and stock new merchandise. We view supporting the small business (SME) segment as a critical priority area and one that is necessary to sustain India’s long term growth trajectory” said Thomas Hyland, Partner, Aspada Investment Advisors.
The Aspada Investment Company is backed with a significant commitment from the Soros Economic Development Fund (SEDF) and works to promote economic opportunity and development in India. Aspada Investment Company is advised by Aspada Investment Advisors, led by Kartik Srivatsa and Thomas Hyland.
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