The proceeds will be utilized for 'Impact Funding' and meeting its disbursement targets

BSE listed NBFC has so raised INR 45 crore in the current financial


Moneyboxx Finance Ltd (MBFL), a BSE listed non-banking finance company that provides small-ticket loans to micro and small enterprises in Tier-II and III towns, today announced that it had raised INR 25crore 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 financial year. It will also utilize the proceeds to undertake 'Impact Funding', thus benefitting the society at large.

Earlier this fiscal, Moneyboxx Finance had raised debt of INR 20 crore from three NBFCs. With thisMBFL 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.

The company also plans to raise over INR 200 crore in 2021-22 with a mix of debt and equity financing.

Moneyboxx Finance AUM would grow at over 100% in FY2021 despite negligible business in H1FY21 due to CoVID-19. The company reported a 30.6% 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% 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 on December 31, 2019.

Commenting on the debt raised, Mr. Deepak Aggarwal, Co-CEO and CFO, Moneyboxx Finance Ltd. said,"These fundswill 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.

"Our collection efficiency of 95 percent during the moratorium, much higher than the industry average, and over 99 percent 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 reasonable doubt, that building a book consisting of assets of excellent quality is possible in the unsecured lending segment", added Deepak.

"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 & Managing Director of UC Inclusive Credit Pvt Ltd. (UCIC), incubated by Unitus Capital, an impact-focussed NBFC.

About Moneyboxx Finance Limited

Moneyboxx — which started operations in February 2019 — has 22 branches spread across four states —Punjab, Haryana, Rajasthan, and Madhya Pradesh, and plans to open 24 new branches in FY22. Its medium-term aim is to build Rs 1,000 crore in asset under management (AUM) within the next three years. MBFL focusses on disbursing small ticket unsecured business loans to individual borrowers (Livestock, Kirana, Traders, Micro-manufacturers in Tier-II and III cities) with loans ranging from Rs 50,000 to 3,00,000, for 24 months tenure on average.

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