Moneyboxx Finance Secures INR 176 Crore from Equity and Warrants

Moneyboxx Finance Limited (Moneyboxx), a BSE-listed Non-Banking Finance Company that focuses on impact financing by providing business loans to micro entrepreneurs in Tier-III & below places, announced allotment of equity shares and warrants convertible to equity amounting to INR 176 crore. The capital raise includes INR 63 crore raised via preferential equity issue and INR 113 crore via equity warrants, from both promoters and non-promoters.

The company has received INR 91 crore, which includes INR 63 crore from preferential equity issue and INR 28 crore from warrants, and the balance INR 85 crore pursuant to warrants is receivable within 18 months. The net worth of the company stood at INR 174 crore as on 30th June 2024, which has increased by over 50% by 31st August 2024 and will double with the total equity raise of INR 176 crore. Over two-thirds of the fund raise has come from promoters and existing shareholders, demonstrating their confidence in the business model and growth prospects.

The fund raise puts the company in a strong position to achieve its target of over INR 2,500 crore AUM by FY26, and the company plans to keep raising capital going forward.

Moneyboxx Finance has led the charge of driving financial inclusion in rural India by providing much-needed business loans to micro-entrepreneurs. With cumulative disbursements of over INR 1,300 crore up till June 2024, Moneyboxx has provided loans to over 1.6 lakh borrowers (including co-borrowers), of which 58% were women and 30% new-to-credit. The company’s strategic plan includes expanding its branch network to over 160 branches and achieving AUM of over INR 1,300 crore by March 2025 from INR 730 crore as of March 2024. The company has further diversified its presence by opening branches in the southern states of India.

Commenting on the fund raise, Mr. Deepak Aggarwal, Co-founder, Moneyboxx Finance Ltd, said, “We are excited about the strong support from our investors, which highlights their confidence in our business model and growth prospects. 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.”

The company remains committed to fostering inclusive growth and creating sustainable livelihoods. The additional capital will also allow Moneyboxx Finance to invest in technology and improve operational efficiencies, further solidifying its position as a reliable financial partner for micro-entrepreneurs in underserved regions.

The Company is supported by 33 lenders, including prominent banks like State Bank of India, HDFC Bank and Kotak Mahindra Bank.