Moneyboxx Finance Raises Debt Funding From BlackSoil Capital, Caspian Debt and Ashv Finance The company aims to utilize the raised INR 10 crore to support its disbursement target of INR 75 crore in the current fiscal, which will be two times its lending in 2019-20
By Prabhjeet Bhatla •
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BSE-listed non-banking finance company (NBFC) Moneyboxx Finance Ltd (MBFL) on Monday announced that it has raised INR 10 crore from BlackSoil Capital, Caspian Impact Investments, and Ashv Finance Pvt. Ltd.
With the current round of fund raised, the NBFC has raised INR 20 crore during the current fiscal till now and is targeting to raise a total of over INR 80 crore from various lenders by the end of March 2021.
"We at Moneyboxx Finance have created a robust system to support micro-businesses and entrepreneurs and the fact that leading lenders such as BlackSoil, Caspian, and Ashv Finance have reposed faith in us is a validation of our business model and we are indeed grateful to them for their support. The funds will help us to further our cause of supporting the deserving micro-enterprises and create a positive impact in this segment," remarked Deepak Aggarwal, co-chief executive officer and chief financial officer, Moneyboxx Finance Ltd, while commenting on the debt raised,
Started its operation in February 2019, MBFL was founded by Mayur Modi and Deepak Aggarwal.
"Our collection efficiency of 95 per cent during the moratorium and over 99 per cent from September onwards despite COVID-19 challenges is testimony to the fact that if underwriting and collection processes are robust, it is possible to create a same or even better quality of book along with a sustainable and profitable business model in the unsecured lending segment," Aggarwal further added.
The firm provides small-ticket loans to livestock, kiranas, traders, and micro-enterprises in tier-II and tier-III towns with loans ranging from INR 50,000 to 3,00,000, mostly for 24 months tenure.
"We are impressed with the core underwriting and collection model at Moneyboxx. Their sound processes have ensured a resilient portfolio even in the present environment. It is our pleasure to support them in building up their portfolio and expanding their presence in new geographies", said Ankur Bansal, co-founder, and director, BlackSoil Capital.
The finance company plans to utilize the proceeds to support its disbursement target of INR 75 crore in the current fiscal, which will be two times of its lending in 2019-20.
"We are delighted to be a part of Moneyboxx's growth story and hope to play a vital role in their journey as they leverage technology, strong credit culture, and on-field presence to reach out to the micro-entrepreneurs and SMEs who lack access to formal credit," said Avishek Gupta, investment director, Caspian Debt.
The company currently has 22 branches spread across four states of Punjab, Haryana, Rajasthan, and Madhya Pradesh and plans to open 24 new branches in FY22. The medium-term aim is to build an INR 1,000 crore asset under management (AUM) within the next three years.
