Mumbai-based non-banking financial company (NBFC) NeoGrowth turned profitable in the financial year ended March 31, 2023. The NBFC reported a profit of INR 17.2 Cr in the financial year 2022-23 (FY23) as against a net loss of INR 39.4 Cr in FY22.
Operating revenue grew 5.3% to INR 380.8 Cr in FY23 from INR 361.5 Cr in the previous year. At INR 363.1 Cr, the NBFC earned the biggest chunk of revenue from interest income. This number stood at INR 357.5 Cr in the previous year.
Besides interest income, NeoGrowth also earned revenue from commission and fees. Total revenue rose to INR 382.9 Cr in FY23 from INR 362.7 Cr in FY22.
Meanwhile, NeoGrowth saw a decline in its expenses. Total expenditure fell 13.7% to INR 357.4 Cr in FY23 from INR 414.5 Cr in the previous fiscal year.
Finance cost was the biggest contributor to NeoGrowth’s total expenditure. Finance cost stood at INR 159 Cr in FY23, a meagre increase from INR 153.4 Cr. Employee benefit expenses rose 16.2% to INR 78.7 Cr from INR 67.7 Cr in FY22.
However, impairment on financial instruments dropped a whopping 52.6% to INR 69.6 Cr in FY23 from INR 147.3 Cr in FY22.
NeoGrowth, founded in 2013 by Dhruv Khaitan and Piyush Khaitan, offers tailored credit solutions to small and medium-sized businesses across 70+ segments.
The NBFC raised $66 Mn in a mix of debt and equity funding across multiple rounds in FY23. Overall, it has raised around $188 Mn to date and counts Dutch development bank FMO, Development Finance Corporation (DFC), Omidyar Network, and Lightrock among its backers.
NeoGrowth’s assets under management (AUM) rose to INR 1,850 Cr at the end of FY23 from INR 1,550 Cr a year ago. The lender claimed to have disbursed loans worth INR 1,900 Cr during the year
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