Moneyboxx Finance To Raise Equity Funding of Over ₹ 75 Crores

Moneyboxx Finance Limited announced equity capital raise of over INR 75 crores by way of preferential allotment to HNIs, family offices and individual investors in its board meeting conducted on November 10, 2023.

The proposed equity funding will almost double its existing capital base and provide a strong boost to its expansion plan and business growth. The Company, which drives financial inclusion by providing business loans to micro entrepreneurs in rural India, targets to expand its branch network to 100+ from current 80 branches across 7 states and achieve AUM of over INR 700 crores by Mar’24. The Company reported a strong turnaround in profitability in H1 FY24 on the back of strong NIM spread, and benefit of operating leverage with growing AUM. It reported net profit of INR 3.01 crores in H1 FY24 compared to a net loss of INR 4.52 crore in H1 FY23.

Moneyboxx Finance Limited is a BSE-listed NBFC engaged in the business of providing business loans to micro enterprises with a focus on impact financing. It operates in Tier-III and below cities with 80 branches spread across 7 states (Rajasthan, Madhya Pradesh, Haryana, Punjab, Uttar Pradesh, Chhattisgarh, and Bihar). It caters to the underserved micro entrepreneurs in the important and essential segments (livestock, kirana, retail traders, micro-manufacturers) by extending unsecured and secured business loans from INR 70,000 to 10,00,000 for a loan tenure from 12 months to 84 months.

MSME Loans Provider Moneyboxx to Double Its Workforce in 2023 to Drive Growth

 

Plans to double its workforce and branch network to 600 & 60 respectively by FY2023.

Intends upgrading technical capabilities and providing on-ground assistance

Moneyboxx Finance Limited (Moneyboxx) – an NBFC that provides small-ticket business loans to micro and small enterprises – will double its headcount by 300 professionals, taking it to more than 600 by the end of FY 2023. The new hires at entry and mid-level will largely be in areas such as sales, credit risk management and select important roles in IT. With the fresh hiring, the team size is expected to grow across domains. For instance, the sales and credit risk teams of Moneyboxx will grow to more than twice their current size. 

The new hires will meet the growing demand of individual borrowers to provide small-ticket business loans and build seamless delivery. To keep pace with the increasing customer demand, continue branch expansion efforts and augment its portfolio for diverse technologies, the Company also plans to reach an AUM of INR400 crores by FY2023 from about INR120 crores (FY2022, projected).

Elaborating on the plans, Mayur Modi, Co-founder – Moneyboxx Finance Ltd, said, “Our customer base has grown consistently, leading to an increase in demand for full-stack technological and service offerings. As a result, we are seeking experienced professionals across functions and branches for seamless service delivery to customers. Functioning via an entirely digital process, risk analytics and solid branch unit economics with low Capex and operating costs, our business model will catalyze efforts to boost the workforce."

Recently, Moneyboxx crossed the INR100 crore AUM and plans to reach the figure of INR400 crore by FY2023 with its focus on essential sectors and services. To date, the Company has transformed the lives of more than 12,000 borrowers. Of these, 26% were women entrepreneurs and 31% first-time borrowers.

About Moneyboxx Finance Limited

Beginning operations under its new ownership and management in February 2019, Moneyboxx currently has 30 branches spread across five states – Rajasthan, Punjab, Haryana, Madhya Pradesh and Uttar Pradesh. The medium-term aim is to build an INR1,000 crore asset under management (AUM) within the next three years. Moneyboxx focuses on disbursing small-ticket business loans to individual borrowers (livestock, kiranas, traders as well as micro-manufacturers in tier-III cities and beyond) with loans ranging from INR50,000 to INR300,000, typically for 24-month tenures on average.

Moneyboxx Finance raises INR 25crore from slew of NBFCs and Small Finance Bank

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.

Moneyboxx Finance Raises Debt of INR 10 Crore from Eclear; Targets to Raise INR 100 Crore during Current Fiscal

BSE Listed NBFC to secure about INR 30 crore debt capital by November end

Moneyboxx Finance Ltd.(MBFL), a BSE-listed Non-Banking Finance Company that provides small-ticket loans to micro and small enterprises in tier-2 and tier-3 towns today announced that it has raised INR 10 crore from Eclear leasing &Finance Pvt. Ltd. to support its disbursement target of INR 80-85 crore in the current fiscal. 

Eclear Leasing, which especially supports NBFCs & MFIs in the financial inclusion space has been the first lender of MBFL and has continuously reposed faith in it by sanctioning INR 18 crore till date.

Moreover, Moneyboxx is targeting to raise INR 100 crore from various lenders. It is also in the final stages of securing another INR 30 crores by end of November for onward lending from six leading investors including a global impact fund and a small finance bank.

Commenting on the debt raised by the company, Mr. Deepak Aggarwal, Co-CEO, Moneyboxx Finance Ltd said, "Right since our inception Eclear Leasing & Finance has been extremely supportive and we are indeed thankful to them and also its top management including Mr. Manoj Bansal for their continued support and trust that they have reposed in us. This will go a long way in helping us achieve our target of disbursing INR 80-85 crore during FY21, which will close to 2.5 times of the disbursement made during FY20 that stood at INR 34 crore."

"Our collection efficiency of 95 percent during moratorium and over 99 percent in September is helping us build confidence among private lenders. We want to further cement our relationship with about fifteen lenders in current fiscal which will not just validate our model but will also support our target of 4 fold jump in AUM in FY22 over FY21," Deepak added.

On its part, Eclear Leasing & Finance Pvt. Ltd. is committed to extend support to Moneyboxx Finance in its endevour. "It is our pleasure to be associated with Moneyboxx and support them in their growth journey. During the lockdown, while many borrowers sought moratorium, Moneyboxx continued to pay regular installments, reflecting their strict discipline in managing books, strong underwriting and focus on collections and sustainability, said Mr. Manoj Bansal, Managing Director, Eclear Leasing & Finance Pvt. Ltd.

About Moneyboxx Finance Limited

Moneyboxx, which started operations in February 2019, currently has 11 branches spread across four states - Punjab, Haryana, Rajasthan and Madhya Pradesh and will open 11 new branches in next 2 months in these states. The medium-term aim is to build an INR 1,000 crore asset under management (AUM) within the next three years. MBFL focuses on disbursing small ticket unsecured business loans to individual borrowers (Dairy, Kirana, Traders, Micro-manufacturers in tier-2 and tier-3 cities) with loans range from INR 50,000 to 3,00,000, mostly for 24 months tenure.