Non-banking financial company (NBFC) Moneyboxx Finance Ltd has raised Rs 271 crore through equity issuance to support its growth plans, according to leading news wire PTI.
The capital includes Rs 158 crore via preferential equity and Rs 113 crore through equity warrants to both promoters and non-promoters.
The BSE-listed NBFC focuses on impact financing by providing business loans to micro-entrepreneurs in Tier-III and below locations. The funds will more than double the company's capital base to over Rs 350 crore, with up to Rs 186 crore expected to be infused by August 2024.
"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," said Moneyboxx Finance Co-founder Deepak Aggarwal.
The additional capital will also allow Moneyboxx Finance to invest in technology and improve operational efficiencies. The company aims to expand its branch network to over 160 branches and achieve assets under management (AUM) of Rs 1,400 crore by March 2025. As of March 2024, Moneyboxx has disbursed over Rs 1,200 crore in loans to more than 1.5 lakh borrowers, with 59% being women and 35% new-to-credit.
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