Moneyboxx Finance Secures Rs 176 Cr Capital To Fuel Growth

Moneyboxx Finance (Moneyboxx), a BSE-listed Non-Banking Finance Company announced allotment of equity shares and warrants convertible to equity amounting to Rs 176 crore. The capital raise includes Rs 63 crore raised via preferential equity issue and Rs 113 crore via equity warrants, from both promoters and non-promoters.

The company has received Rs 91 crore, which includes Rs 63 crore from preferential equity issue and Rs 28 crore from warrants, and the balance Rs 85 crore pursuant to warrants is receivable within 18 months. The net worth of the company stood at INR 174 crore as on 30th June 2024, which has increased by over 50% by 31st August 2024 and will double with the total equity raise of Rs 176 crore. 

Over two-thirds of the fund raise has come from promoters and existing shareholders, demonstrating their confidence in the business model and growth prospects.

The fund raise puts the company in a strong position to achieve its target of over Rs 2,500 crore AUM by FY26, and the company plans to keep raising capital going forward.

Moneyboxx Finance has led the charge of driving financial inclusion in rural India by providing much-needed business loans to micro-entrepreneurs. With cumulative disbursements of over INR 1,300 crore up till June 2024, Moneyboxx has provided loans to over 1.6 lakh borrowers (including co-borrowers), of which 58% were women and 30% new-to-credit. The company’s strategic plan includes expanding its branch network to over 160 branches and achieving AUM of over INR 1,300 crore by March 2025 from INR 730 crore as of March 2024. The company has further diversified its presence by opening branches in the southern states of India.

Commenting on the fund raise, Deepak Aggarwal, Co-founder, Moneyboxx Finance, said, “We are excited about the strong support from our investors, which highlights their confidence in our business model and growth prospects. 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.”