 "Q3 earnings, results")
LeapFrog Investments-backed NeoGrowth, a digital financial lender, posted a profit of Rs 28 crore in the third quarter of the financial year 2024 (FY24), up from Rs 2 crore in the year-ago period on the back of operational efficiency and scaling up of its operations.
The Mumbai-based company saw a 67 per cent year-on-year increase in its gross revenue from Rs 96 crore in Q3 FY23 to Rs 160 crore in Q3 FY24.
Arun Nayyar, Managing Director (MD) and Chief Executive Officer (CEO) of the company, said the firm achieved efficiency in its operations by investing in tech and data science.
“A year back, we used to spend almost 60 per cent of our margins on operating. Now, we spend only one-third of it. So, that lift through effective use of ecosystem availability, as well as process refinement, helped us get there,” Nayyar added.
Additionally, NeoGrowth’s rating has been upgraded from [ICRA]BBB to [ICRA]BBB+, the company said.
It has seen its disbursements grow from Rs 483 crore in Q3 FY23 to Rs 672 crore in Q3 FY24.
Meanwhile, the company expects to raise more equity capital in the next financial year. NeoGrowth has plans to infuse Rs 500 crore in FY25 to support its growth plans.
NeoGrowth offers loans in the retail and supply chain finance category.
“Supply chain financing is almost one-third of our business, and it would be around 35 per cent of our revenues. It is a slightly low margin business. Another is the retailer vertical, where we lend money to small businesses who are into offline consumer-facing retail,” Nayyar explained.
The company claims to have a portfolio of 26,000 active MSME borrowers spread over 75 industries and over 25 locations. It has disbursed over Rs 11,000 crore while engaging with over 1,50,000 MSMEs.
“Our robust performance in Q3 FY24 is fuelled by our innovative product offerings, deep understanding of the customer segment, and strong digital lending capabilities. By combining Digital Public Infrastructure with data science and analytics, we continue to enhance our customer selection and risk management processes,” Nayyar added.
