Moneyboxx Finance Raises Rs 24 Crore Equity Capital for AUM Growth

Moneyboxx Finance which offers business loans to microentrepreneurs in smaller towns, announced on Monday that it has received Rs 24 crore in equity capital through a private placement from investors other than the promoters.

With this round of fundraising, the business claims to have raised a total of Rs 93.5 crore in capital since its founding and Rs 48.4 crore in 2022–2023 (including warrants worth Rs 3.36 crore).

Given the enormous unmet credit gap for micro-enterprises in the loan segment under Rs 10 lakh, Moneyboxx stated in a release that the company has strengthened its capital position with the most recent equity fund raises. The company plans to use the funds to expand its scale of operations and tap growth opportunities.

Assets under management (AUM) for Moneyboxx increased by 185% over the previous year to Rs 345 crore in March 2023 due to expanding and boosting branch productivity.

Co-founder of Moneyboxx Deepak Aggarwal claims that “the equity fundraise, along with growing and ongoing support from our lenders, will help us to further our cause of supporting the deserving micro-enterprises and making sure they achieve sustainable economic progress for them through various beyond-lending impact initiatives.”

In 2022 – 2023, Moneyboxx’s branch network increased to 61 branches spread across six states, and it plans to reach 100 branches and Rs 1,000 crore in AUM this fiscal year (2023-24).

It offers individual borrowers in tier-III and below towns unsecured and secured business loans of Rs 1–7 lakh for livestock, kirana, dealers, as well as micro-manufacturers.