Women-run micro, small and medium enterprises (MSME) have availed loans worth Rs 430 crore, accounting for 24 per cent of the overall loans disbursed to MSMEs in FY23, highlighted the NeoGrowth Impact Report 2023.
The report said that more than 2600+ women-owned MSMEs availed business loans in the last fiscal year. NeoGrowth is an MSME-focused digital lender in India, leveraging the digital ecosystem.
NeoGrowth disbursed close to Rs 500 crore to MSMEs in Tier-II cities. Almost 50 per cent of the total loans were advanced to emerging small businesses that have been in operation for less than or equal to 5 years.
Based on an impact survey conducted with over 250 NeoGrowth customers across 7 cities, 84 per cent of respondents were self-starters, who were the first in their families to establish a business. The interviewed MSME owners witnessed an 18 per cent increase in female employees post availing a business loan from NeoGrowth. Almost 1/4th of the MSMEs expanded their business with the loan.
“At NeoGrowth, we are not only building a sustainable, inclusive and purposeful ecosystem for MSMEs in India to bridge the credit gap but also achieving six important social development goals set by the United Nations, thereby contributing towards holistic growth. All our customers come with unique business stories, and we are proud to be associated with small business owners from over 75 industry segments. It is our unwavering commitment to empower first-generation entrepreneurs, support women-run businesses, and promote financial inclusion, thereby contributing to a thriving and inclusive economy,” said Arun Nayyar, Managing Director & CEO of NeoGrowth.
“MSMEs are driving the growth of India’s economy and will continue to spearhead the realisation of India’s USD 5 trillion economy vision,” he further stated.
The loans extended by NeoGrowth also have a snowball effect on MSMEs, which includes job creation, improvement in credit score, female entrepreneurship, and digitalisation of MSMEs, among others.
The company crossed the Rs 2,000 crore Assets Under Management (AUM) mark as on June 30, 2023, at the end of the first quarter of FY 2023-24.
