Reinvestment strategy adopted by PE-funded NeoGrowth aims to enhance profit margins, resulting in a temporary reduction in expansion pace.
In a recent development, NeoGrowth Credit, a fintech firm primarily lending to small and medium enterprises (SMEs), has reported a significant drop in revenue growth for the fiscal year 2025 (FY25), though it remains above its historical average. This revelation, gathered from our website, comes amidst a surge in bad loans at the company, contributing to its weakened profitability.
Despite the decline, NeoGrowth Credit has managed to recover from previous financial struggles, accelerating its revenue and profit growth. In the fiscal year 2024 (FY24), the company's revenue significantly increased due to its recovery efforts.
The profitability of NeoGrowth Credit has weakened in recent times. The company's revenue growth rate for FY25 has halved compared to FY24, indicating a slowdown in the growth momentum. However, the specific details about the current fiscal year's revenue and profit growth rates are not available.
Notably, NeoGrowth Credit is backed by FMO, a Dutch development bank, which has been instrumental in its growth story.
The surge in bad loans at NeoGrowth Credit might be attributed to various factors such as moderation after a high growth base, market or regulatory pressures, shift in product mix, increased competition, temporary operational challenges, or strategic recalibration. However, the exact reasons for this decline in revenue growth rate remain unclear without specific evidence.
On a positive note, NeoGrowth Credit has reined in bad loans and moved out of the red, indicating its resilience in managing its financial health.
Meanwhile, other developments include Sanad receiving a top-up from Limited Partners (LP) for its MENA-focused MSME debt fund, and Helios securing an offshore LP commitment of up to $30 million for its climate fund. These investments underscore the confidence of investors in the potential of such businesses.
As always, we will continue to monitor the situation and bring you updates as they become available.
- Despite the surge in bad loans and the decline in revenue growth rate, the resilience of NeoGrowth Credit in managing its financial health is evident, as shown by its recovery from the red.
- The growth and resilience of NeoGrowth Credit, a fintech firm primarily lending to SMEs, is supported by FMO, a Dutch development bank.
