NeoGrowth witnesses impressive figures for FY2018-19, accounting for revenue growth of 25% and profits of INR 4.32 crores
Author(s): City Air NewsMumbai, August 20, 2019: NeoGrowth, India’s leading digital lending NBFC serving underbanked SME businesses, has announced its financial results for FY2018-19. One of the few fintech NBFCs to be profitable, the...
Mumbai, August 20, 2019: NeoGrowth, India’s leading digital lending NBFC serving underbanked SME businesses, has announced its financial results for FY2018-19.
One of the few fintech NBFCs to be profitable, the company has registered a notable profit of INR 4.32 crores on a total income of INR 303.21 crores in FY2018-19. A rapid growth of 25% has also been witnessed in terms of revenue, highlighting NeoGrowth’s emphasis on innovations, accountability, and customer-centeredness as the major contributors to such excellent financial performance.
Apart from the revenue, NeoGrowth has also registered a steady 22% Y-o-Y growth in terms of Assets-Under-Management (AUM), rising from INR 868 crores as on March 31, 2018 to INR 1,057 crores, as updated on March 31, 2019.The company’s dedication towards financially empowering the underserved SMEs in the country has resulted in it successfully recovering from the slowdown experienced in FY2017-18, wherein a loss of INR 23.59 crores on a total income of INR 243.05 crores was reported. While credits to recovery and subsequent excellence in performance can be pinned to its persistent efforts towards enabling growth for its customers, NeoGrowth also acknowledges its differentiating business model as a significant contributor to its success.
The company has a unique business model wherein it offers collateral-free loans to its customers as per their specific requirements, based on their Point-of-Sale (POS) machine sales. Such a concept of lending to merchants is unique and at its nascent stages in the country, thereby enabling an NBFC like NeoGrowth to take a first-mover advantage with its innovative lending solutions. Moreover, these operational innovations have been readily and widely accepted by erstwhile financially underserved small, medium, and emerging businesses across the country.
As a result, NeoGrowth continues being rated as BBB+ (stable) by CARE Ratings which takes into consideration factors like the overall experience of the company and its management team, and comfortable liquidity profile and capitalization levels. All of this indicates how the company has been making steady positive developments as it continues endeavoring on its journey towards being the most-preferred digital lending company for the SMEs in India.
Acknowledging the notable figures, Piyush Khaitan, Founder & Managing Director, NeoGrowth remarked, “It is heartening to see the financial performance that NeoGrowth has recorded in FY2018-19. The company’s long-standing efforts towards empowering the backbone of the country’s economy—the SMEs—are being recognized and appreciated by all the stakeholders in the digital lending ecosystem, resulting in the growth that we see today. While there exists competition from both organized as well as unorganized segments, NeoGrowth’s ability to constantly deliver value and establish trust amongst our customers through our unique business model sets us apart. Amidst such positive developments made, we hope to continue extending our sincere support to the underserved businesses, financially empowering them and subsequently contributing to the growth of Indian economy.”