Digital lending platform NeoGrowth appoints Edelweiss exec as CEO

Mumbai-headquartered non-banking financial company NeoGrowth Credit Pvt. Ltd has appointed former Edelweiss executive Arun Kumar Nayyar as its new chief executive, a company statement said.

In his new role, Nayyar is expected to steer the company toward the next stage of its growth, the press note added.

A chartered accountant by qualification, Nayyar was earlier heading the SME lending division at the retail finance arm of financial services group Edelweiss. His earlier professional stints, among others, also include Citibank India and CRISIL.

NeoGrowth Credit Pvt. Ltd was founded in 2010 by serial entrepreneurs and Venture Infotek founders Dhruv Khaitan and Piyush Khaitan. The company, which is primarily involved in the merchant cash advance business, provides flexible loans to merchants who accept card or other digital payments from customers and offers them automated repayment options.

The company analyses turnover data from a merchant’s point-of-sales terminal to determine the creditworthiness and claims to disburse loans in three days.

NeoGrowth has partnered with more than 12,000 business merchants spread across 21 Tier-1 and tier-2 Indian cities, according to the statement.

The latest development also comes six months after it raised $47 million led by Leapfrog Investments. Existing investors Aspada Investment Company and Quona Capital had also participated in the round.

In July 2013, investment firm Omidyar had picked up 29% stake in NeoGrowth. Eight months later, the NBFC raised Rs 10 crore ($1.62 million) from Aspada Investment Company.

In April 2015, NeoGrowth raised an undisclosed amount of funding led by Silicon Valley-based social venture investor Khosla Impact.

A couple of other fintech startups in the online lending space have also recently made some crucial appointments.

Last month, digital lending and technology-led financial services startup InCred appointed Yes Bank executive Vivek Bansal as its chief financial officer.

In April, Mumbai-based Aeries Financial Technologies Pvt. Ltd, which operates personal loan app CASHe, appointed former Kotak Mahindra Bank executive Ketan Patel as its chief executive officer and executive director.