Moneyboxx receives Rs 14.41 crore in equity to fund AUM expansion

Moneyboxx Finance Limited, a BSE-listed Non-Banking Finance Company (NBFC), provides small-ticket loans to micro and small businesses in Tier-III cities. It has raised Rs 14.41 crore in equity capital through a private placement from non-promoter investors.

With this fundraise, the company has strengthened its capital position. Given the sizeable unmet credit gap for micro-enterprises, it plans to use it to expand its scale of operations and tap growth opportunities. The company’s AUM will surpass Rs 100 crore in January 2022, fueled by the business at existing branches, and the fund raised will supplement AUM growth by an additional Rs 75 crore.

Moneyboxx, which doubled its branch network to 22 in FY21, expanded into Uttar Pradesh by opening a branch in Agra in December 2021. With the current fundraising, the company plans to add seven units in the exfundraiser states, bringing its network to 30 by March 2022.

“We aim to provide credit to underserved micro-businesses and entrepreneurs in a cost-effective and transparent manner. The equity fund raise along with the support from our lenders will help us further our cause of supporting the deserving micro enterprises and create a positive impact in this segment. 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 low NPAs, attributed to our tech-driven underwriting practices and customer connect with on-ground presence,”

Deepak Aggarwal, co-founder, Moneyboxx

Moneyboxx reported a 127.3 percent increase in its loan book, which stood at Rs 72.80 crore as of September 30, 2021, compared to Rs 32.03 crore as of September 30, 2020, driven by improved branch productivity and doubling of branches over the previous year.

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