Moneyboxx Finance Limited, a Bombay Stock Exchange-listed Non-Banking Finance Company (NBFC) that aims to focus on impact financing by providing business loans to micro-entrepreneurs in Tier-III and below places, raised equity capital of over Rs 24 crores by way of private placement from non-promoter investors. 

With this funding round, the company has raised capital of Rs 48.4 crores in the fiscal year 2023 (FY23) (including warrants of Rs 3.36 crores) and total capital of Rs 93.5 crores since its inception.

The company has strengthened its capital position with the recent equity fund raises and plans to use the funds for expanding its scale of operations and tap growth opportunities given the huge unmet credit gap for micro-enterprises in the loan segment under Rs 10 lakhs. The company’s AUM reached Rs 345 crores in March 2023, growing strongly by 185 per cent over last year, driven by improving branch productivity and expansion. Moneyboxx reportedly doubled its branch network to 61 branches across six states in FY23 and is targeting 100 branches and assets under management (AUM) of Rs 1,000 crores by FY24.

“We at Moneyboxx Finance aim to provide credit to underserved micro businesses and entrepreneurs cost-effectively and transparently. The equity fundraise along with growing and continuous support from our lenders will help us to further our cause of supporting the deserving micro-enterprises and ensuring sustainable economic progress for them with various beyond-lending impact initiatives,” said Deepak Aggarwal, co-founder, Moneyboxx Finance Ltd. 

“We have successfully scaled up our operations in the last four years and built a scalable and sustainable business model with strong portfolio quality owing to our robust, tech-driven underwriting practices and a strong customer connect through on-ground presence”, he added.