Dutch development bank Financierings-Maatschappij voor Ontwikkelingslanden (FMO) recently signed a senior secured facility equivalent to USD 10 million in local currency to India’s NeoGrowth to expand its lending to microenterprises. Founded in 2013, NeoGrowth makes loans to micro, small, and medium enterprises (MSMEs) based on their digital payment histories, rather than traditional credit histories. The company offers secured and unsecured loans up to INR 15 million (USD 190,000). As of 2022, the organization serves 20,000 customers in 25 cities through 29 branches. NeoGrowth brings in around INR 15.6 billion (USD 200 million) in assets.
Founded in 1970, FMO is 51% owned by the Dutch government and 49% by private investors. The institution works to achieve the United Nations Sustainable Development Goals by financing capacity development and placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of December 2021, FMO reports a total committed portfolio of €9.7 billion ($10.2 billion), having generated a net profit of €491 million ($518 million) during of this year.
By Nithin Naren, Research Associate
Sources and additional resources
FMO press release
NeoGrowth Home Page
NeoGrowth Financial Statements
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