Moneyboxx Finance Raises Rs 271 Crore for Expansion Plans

Non-banking financial company Moneyboxx Finance Ltd has raised Rs 271 crore through equity issues to bolster its growth. The funds will enhance its capital base, invest in technology, and expand its branch network. The NBFC aims to reach Rs 1,400 crore in assets under management by March 2025.

Non-banking financial company (NBFC) Moneyboxx Finance Ltd on Wednesday announced it has raised Rs 271 crore through equity issuance to support its expansion plans.

The capital raise includes Rs 158 crore via preferential equity and Rs 113 crore through equity warrants to both promoters and non-promoters, according to a statement from Moneyboxx Finance.

Moneyboxx Finance, listed on the BSE, focuses on impact financing, providing business loans to micro-entrepreneurs in Tier-III and below locations. The new funds will significantly bolster the company's capital position, enabling growth and investment in technology.

By August 2024, up to Rs 186 crore of the new equity is expected to be infused, more than doubling the company's capital base to over Rs 350 crore. This additional capital will also help Moneyboxx Finance improve its operational efficiencies.

As of March 2024, Moneyboxx has cumulatively disbursed over Rs 1,200 crore in loans to more than 1.5 lakh borrowers, with 59 percent women and 35 percent new-to-credit customers.

The company aims to expand its branch network to over 160 branches and achieve assets under management (AUM) of Rs 1,400 crore by March 2025, up from Rs 730 crore as of March 2024.

''This fresh capital will enable us to enhance our outreach and impact in rural India, providing vital financial support to micro-entrepreneurs and contributing to their economic empowerment,'' Deepak Aggarwal, Co-founder of Moneyboxx Finance Ltd, said.

The company is supported by 32 lenders, including prominent banks like State Bank of India, HDFC Bank, and Kotak Mahindra Bank.

(With inputs from agencies.)