Moneyboxx Finance Raises INR 25 Cr From NBFCs And Small Finance Bank
The proceeds will be utilized for impact funding and meeting its disbursement targets
BSE-listed non-banking finance company Moneyboxx Finance Ltd (MBFL), which provides small-ticket loans to micro and small enterprises in tier-II and III towns, on Thursday announced that it has raised INR 25 crore in debt from a slew of lenders, mostly non-banking finance companies (NBFCs) and small finance banks since January 2021.
As many as nine new lenders including AU Small Finance Bank, Hinduja Finance, Ambit Finance, InCred Financial, UCInclusive Credit, Profectus Capital, Capri Global, and others have reposed faith in Moneyboxx Finance by providing debt support to the company.
MBFL plans to utilize the proceeds to support its disbursement target in the current and upcoming fiscal year. It will also utilize the proceeds to undertake ‘impact funding’, thus benefiting the society at large.
“These funds will not only assist us in ramping up operations and expansion but also help us to amplify profitability while bringing necessary credit to people and sectors who need it the most and create economic value for them. We continue to build a large base of lending partners every month and the funding amount of each partner is likely to increase in subsequent tranches,” Deepak Aggarwal, co-chief executive officer, and chief financial officer, Moneyboxx Finance Ltd.
Earlier this fiscal, Moneyboxx Finance had raised a debt of INR 20 crore from three NBFCs. With this MBFL has been able to diversify its borrowing profile by adding twelve new lenders in this fiscal year, thus taking its total lender count to fourteen.
“Our collection efficiency of 95 per cent during the moratorium, much higher than the industry average, and over 99 per cent from September onwards despite the challenges faced by restrictions owing to the pandemic demonstrates the robustness and sophistication of our collection and underwriting processes. It also establishes, beyond a reasonable doubt, that building a book consisting of assets of excellent quality is possible in the unsecured lending segment,” added Aggarwal.
The company also plans to raise over INR 200 crore in 2021-22 with a mix of debt and equity financing.
“We are happy to be part of the Moneyboxx journey, as they address an important credit problem for the under-served micro-entrepreneurs in India. Their strong underwriting model along with collection processes is likely to ensure that the portfolio will remain resilient, even during the pandemic,” stated Abhijit Ray, co-founder and managing director, UC Inclusive Credit Pvt Ltd. (UCIC).
Moneyboxx Finance AUM would grow at over 100 per cent in FY2021 despite negligible business in H1FY21 due to COVID-19. The company reported a 30.6 per cent increase in its total Income for Q3FY21 at INR 2.88 crore compared to INR 2.21 crore for Q2FY21. It has also registered a whopping 109.9 per cent growth in its loan book, which stood at INR 45.38 crore as on December 31, 2020, in comparison to a loan book of INR 21.62 crore as of December 31, 2019.