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The NeoGrowth Impact Report 2023 found that in the financial year 2022-23, nearly Rs 1,900 crore in loans were disbursed to Micro, Small & Medium Enterprises (MSMEs), with Rs 430 crore being availed of by women-led MSMEs. This allocation accounted for more than 2,600 loans and made up 24 per cent of the total loans disbursed, highlighting the growing influence of women in the MSME sector.
NeoGrowth, an MSME-focused digital lender in India, released the impact report. This is the ninth edition of the NeoGrowth Impact Report. It showcases the company's loans and its subsequent impact on businesses and larger UN development goals.
Insights for the report were gathered through a survey that engaged more than 250 NeoGrowth customers across seven cities. This survey found that 84 per cent of respondents were first-generation business owners. After availing loans from NeoGrowth, these entrepreneurs reported an 18 per cent increase in female employees, further solidifying the company's contribution to gender equality and women's empowerment.
The impact report found that nearly half of the loans disbursed were dedicated to the MSME segment, signifying their pivotal role in the Indian business landscape. Support through loans were also extended to emerging small businesses that have been operational for five years or less.
The report also found that 26 per cent of loans were disbursed to MSMEs in Tier-2 cities. This approach also aligns with the United Nations Social Development Goals (UNSDGs).
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Around 17 per cent of the loans disbursed by NeoGrowth directly generated employment opportunities.
A significant 25 per cent of the MSMEs expanded their businesses with the acquired loans, stimulating growth and innovation. The loans have also set off a chain reaction, leading to job creation, improved credit scores, increased female entrepreneurship, and digitalisation of MSMEs.
Arun Nayyar, the managing director & CEO of NeoGrowth, stated, "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."
As of June 30, 2023, the company has crossed the Rs 2,000 crore assets under management (AUM) mark and has disbursed more than $1 billion since its inception.
