Moneyboxx Finance Limited, a BSE-listed non banking financial company (NBFC) that focuses on impact financing by providing business loans to micro-entrepreneurs in Tier-III cities and below, secured Rs 20 crores term loan from Maanaveeya Development and Finance Private Limited (Maanaveeya), an Indian subsidiary of Oikocredit. Oikocredit is a 40-year-old Global Development Financing Institution that responds to the needs of businesses that create jobs and income for disadvantaged people. The company will utilise the funds for onward lending to the micro-entrepreneurs.
Moneyboxx is supported by 24 lenders, including leading banks (State Bank of India, IDFC First Bank, DCB Bank, AU SFB) and NBFCs and impact funds and has raised cumulative debt of close to Rs 400 crores. With planned equity raise and continuous support from lenders and co-lending partnerships, the company aims to transform the lives of micro-entrepreneurs in India and is targeting assets under management (AUM) of about Rs 1,000 crores by FY24 from current AUM of Rs 290 crore as of February 2023. The company plans to increase its branch network to 100 by FY24 from the current 56 branches.
"The loan from Maanaveeya will help boost our efforts in fostering financial inclusion by addressing the unmet and growing need for credit in the Rs 1-10 lacs small business loan segment. With a robust and highly scalable business model in place, backed by an entirely digital process and risk analytics capabilities, we are poised to create a greater positive impact on small businesses across small towns,” said Deepak Aggarwal, co-founder of Moneyboxx.
Moneyboxx is driving financial inclusion by catering to the unmet credit needs of micro-entrepreneurs in Tier-III and below regions. The company claims that with cumulative disbursements of over Rs 471 crores up to February 2023, it has transformed the lives of over 28,300 borrowers, of which 53 per cent were women and 35 per cent new-to-credit. The company has engendered sustainable and transformational changes in borrowers' lives through various impact initiatives such as free vet consultation service for livestock borrowers and free plantation of fruit-bearing trees for its borrowers who own agricultural land, thereby providing them with an alternate source of income.
