Moneyboxx Finance Ltd (MBFL), a BSE listed non-banking finance company that provides small-ticket loans to micro and small enterprises in Tier-II and III towns, has raised Rs 25 crore in debt from a slew of lenders – mostly non-banking finance companies (NBFCs) and small finance banks since January 2021.
As many as nine new lenders including AU Small Finance Bank, Hinduja Finance, Ambit Finance, InCred Financial, UCInclusive Credit, Profectus Capital, Capri Global and others have reposed faith in Moneyboxx Finance by providing debt support to the company, the company said in a release.
MBFL plans to utilize the proceeds to support its disbursement target in the current and upcoming financial year. It will also utilize the proceeds to undertake ‘Impact Funding’, thus benefitting the society at large.
Earlier this fiscal, Moneyboxx Finance had raised debt of Rs 20 crore from three NBFCs. With this, MBFL has been able to diversify its borrowing profile by adding 12 new lenders in this fiscal year, thus taking its total lender count to 14.
The company also plans to raise over Rs 200 crore in 2021-22 with a mix of debt and equity financing.
Moneyboxx Finance AUM would grow at over 100% in FY2021 despite negligible business in H1FY21 due to CoVID-19. The company reported a 30.6% increase in its total Income for Q3FY21 at Rs 2.88 crore compared to Rs 2.21 crore for Q2FY21.
It has also registered a whopping 109.9% growth in its loan book, which stood at Rs 45.38 crore as on December 31, 2020 in comparison to a loan book of Rs 21.62 crore as on December 31, 2019.
Moneyboxx Finance Co-CEO and CFO Deepak Aggarwal said, “These funds will not only assist us in ramping up operations and expansion, but also help us to amplify profitability while bringing necessary credit to people and sectors who need it the most and create economic value for them.”
“We continue to build a large base of lending partners every month and the funding amount of each partner is likely to increase in subsequent tranches,” Aggarwal added.
“Our collection efficiency of 95% during the moratorium, much higher than the industry average, and over 99% from September onwards despite the challenges faced by restrictions owing to the pandemic demonstrates the robustness and sophistication of our collection and underwriting processes,” he added.
Moneyboxx, which started operations in February 2019, has 22 branches spread across four states —Punjab, Haryana, Rajasthan, and Madhya Pradesh. It plans to open 24 new branches in FY22.
Its medium-term aim is to build Rs 1,000 crore in asset under management (AUM) within the next three years.
MBFL focusses on disbursing small ticket unsecured business loans to individual borrowers (Livestock, Kirana, Traders, Micro-manufacturers in Tier-II and III cities) with loans ranging from Rs 50,000 to Rs 3,00,000, for 24 months tenure on average.