Moneyboxx Finance secures INR 25 crore from slew of NBFCs and Small Finance Bank

Moneyboxx Finance, a non-banking finance company that provides small-ticket loans to micro and small enterprises in Tier-II and III towns, announced that it had raised INR 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.

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.

Commenting on the debt raised, Deepak Aggarwal, Co-CEO and CFO, Moneyboxx Finance 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.

Earlier this fiscal, Moneyboxx Finance had raised debt of INR 20 crore from three NBFCs. With this MBFL has been able to diversify its borrowing profile by adding twelve new lenders in this fiscal year, thus taking its total lender count to Fourteen.

The company also plans to raise over INR 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 INR 2.88 crore compared to INR 2.21 crore for Q2FY21. It has also registered a whopping 109.9% growth in its loan book, which stood at INR 45.38 crore as on December 31, 2020 in comparison to a loan book of INR 21.62 crore as on December 31, 2019.

“Our collection efficiency of 95 percent during the moratorium, much higher than the industry average, and over 99 percent from September onwards despite the challenges faced by restrictions owing to the pandemic demonstrates the robustness and sophistication of our collection and underwriting processes. It also establishes, beyond reasonable doubt, that building a book consisting of assets of excellent quality is possible in the unsecured lending segment”, added Deepak.