Moneyboxx Finance Limited (Moneyboxx), a BSE-listed Non-Banking Finance Company that provides small-ticket loans to micro and small enterprises in Tier-III towns & below places, announced it has raised Equity Capital of INR 14.41 crores by way of private placement from non-promoter investors.
The Company has strengthened its capital position with this fund raise and plans to use the funds for expanding its scale of operations and tap growth opportunities given the huge unmet credit gap for micro enterprise. The Company’s AUM will cross INR 100 crores in Jan 2022, supported by growing business at existing branches, and the fund raise would further augment AUM expansion by additional INR 75 crores, the statement said.
Moneyboxx, which doubled its branch network to 22 in FY21, entered Uttar Pradesh by opening its branch in Agra in Dec 2021, and with the current fund raise, it plans to add 7 branches in existing four states, taking its network to 30 by March 2022, it said.
Commenting on the fund raise, Deepak Aggarwal, Co-founder, Moneyboxx Finance Ltd said, “We at Moneyboxx Finance aim to provide credit to underserved micro businesses and entrepreneurs in a cost-effective and transparent manner. The equity fund raise 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.”
“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 strong customer connect with onground presence. We have built up a scalable, sustainable & profitable business model in the unsecured lending segment”, he added.
The equity capital of INR 14.41 crores by way of private placement from non-promoter investors was raised on 31st December 2021.
