Moneyboxx Finance Targets 2.5 Fold Growth With 11 New Branches
Moneyboxx, which started operations in February 2019, currently has 11 branches spread across four states - Punjab, Haryana, Rajasthan and Madhya Pradesh. During the October-December quarter, it will open 11 new branches in these four states taking its total number of branches to 22.
Moneyboxx Finance Limited (MBFL), a BSE-listed Non-Banking Finance Company that provides small-ticket loans to micro and small enterprises in tier-2 and tier-3 towns, announced it will open 11 new branches across four states.
The company has also set a target to disburse around INR 85 crore in the current fiscal, a 2.5 fold jump from 2019-20 level.
Moneyboxx, which started operations in February 2019, currently has 11 branches spread across four states – Punjab, Haryana, Rajasthan and Madhya Pradesh. During the October-December quarter, it will open 11 new branches in these four states taking its total number of branches to 22. The new branches will come up at Mansa, Sangrur and Abhor (Punjab); Mahwa, Kekri and Sikar (Rajasthan); Kaithal, Jind & Bhiwani (Haryana); Agar and Sehore (Madhya Pradesh).
The NBFC is in the process of hiring another 100 employees, who will be primarily posted in the upcoming branches. It currently has around 110 employees.
Commenting on its future plan, Mr. Mayur Modi, Co-CEO, Moneyboxx Finance Ltd said, “MBFL has among the best collection efficiency across all NBFCs with over 95 percent collections during March-August 2020 despite government mandated moratorium and lockdown. Collection efficiency in July and August stood at 98 percent while in September it crossed 99 percent. The NBFC did not seek any moratorium from its lenders during the moratorium period.”
“With strong financial position, we believe the time is ripe for us to expand our footprints. During the current fiscal, we aim to double our loan book, double our branch network and also double our employee base. For this purpose, we have released about 100 offer letters over the past 3 months with some of them going to people who lost their employment during COVID, which gives us a deep sense of satisfaction for being able to contribute to society in the best possible manner,” Mayur added.
Mayur Modi said that the NBFC aims to more than double its loan book during the current fiscal to INR 80-85 crores as against its total loan outstanding of INR 34 crores at the end of last fiscal (FY20).
The medium-term aim is to build an INR 1,000 crore asset under management (AUM) within the next 3 years, he said while expressing confidence that it’s strong focus on underwriting and collection will help in achieving our short and medium-term goal.