Moneyboxx Finance Raises INR 20.77 Crore The NBFC plans to use the funds for expanding its scale of operations and tap growth opportunities in the segment
By S Shanthi
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Moneyboxx Finance Limited (Moneyboxx), a BSE-listed Non-Banking Finance Company that provides unsecured and secured business loans to micro and small enterprises in Tier-III towns & below places, raised Equity Capital of INR 20.77 crore by way of private placement from non-promoter investors on June 2, 2022, which followed the INR 14.42 crore of Equity raised in December 2021.
The company has strengthened its capital position with the recent equity fund raises and plans to use the funds for expanding its scale of operations and tap growth opportunities given the huge unmet credit gap for micro-enterprises in the loan segment under INR 10 Lakhs. The company's AUM reached INR 119 crores in March 2022, growing strongly by 92 per cent over last year, supported by growing business at existing branches.
Moneyboxx plans to expand its current network of 30 branches across five states to 60 branches by FY23 and over 100 branches by FY24 by expanding its operations in existing states and entering new states with an aim to build AUM of over INR 400 crore by FY23 and AUM of over INR 1,000 crore by FY24.
"We at Moneyboxx Finance aim to provide credit to underserved micro-businesses and entrepreneurs in a cost-effective and transparent manner. The equity fundraise along with growing and continuous support from our lenders will help us to further our cause of supporting the deserving micro-enterprises and create a positive impact in this segment," said Deepak Aggarwal, Co-founder, Moneyboxx Finance Ltd.
"We have built a sound business model and our portfolio remains resilient despite the challenges created by the COVID-19 pandemic, reflected in our high collection efficiency and very low NPAs, attributed to our robust, tech-driven underwriting practices and a strong customer connect with on-ground presence. We have built a scalable and sustainable business model in the loan segment under INR 10 Lakhs", he added.
