Moneyboxx Finance Secures Rs 176 Crore to Propel Growth

Moneyboxx Finance, an NBFC focused on providing loans to micro-entrepreneurs, raised Rs 176 crore to support its growth plans. The funds came from a mix of equity shares and convertible warrants. Promoters and existing shareholders contributed over two-thirds of the capital, demonstrating strong confidence in the company's future.

Moneyboxx Finance, a non-banking financial company (NBFC) specializing in business loans for micro-entrepreneurs, announced on Friday that it has secured Rs 176 crore to bolster its growth initiatives.

In a regulatory filing to the Bombay Stock Exchange (BSE), Moneyboxx Finance revealed it had allotted equity shares and warrants, which are convertible into equity, amounting to the substantial sum. The capital raise was broken down into Rs 63 crore from a preferential equity issue and Rs 113 crore through equity warrants contributed by both promoters and non-promoters.

The company stated it has already received Rs 91 crore of the total funds, composed of Rs 63 crore from the equity issue and Rs 28 crore from the warrants. The remaining Rs 85 crore from the warrants is expected within 18 months. As of June 30, 2024, the company's net worth was Rs 174 crore, which saw a 50% increase by August 31, 2024, largely owing to this capital infusion.

Promoters and existing shareholders, indicating confidence in the firm's business model and growth potential, contributed over two-thirds of the funds. 'The fund raise places the company in a robust position to achieve its target of over INR 2,500 crore in assets under management (AUM) by the fiscal year 2026,' said Moneyboxx Finance.

Co-founder Deepak Aggarwal emphasized the importance of the fresh capital in expanding the company's reach in rural India, providing critical financial assistance to micro-entrepreneurs and contributing significantly to their economic empowerment. With 123 branches spread over 11 states, Moneyboxx Finance addresses needs of micro-entrepreneurs in sectors like livestock, retail, and micro-manufacturing through unsecured and secured loans ranging from Rs 1 lakh to Rs 10 lakh.

(With inputs from agencies.)