Tuesday, October 3, 2023
HomeInsightFunding Alert Moneyboxx Finance raises $2.6 million in funding

[Funding alert] Moneyboxx Finance raises $2.6 million in funding

[Funding alert] Moneyboxx Finance raises $2.6 million in funding

Moneyboxx Finance Limited (Moneyboxx), a Non-Banking Finance Company (NBFC) has raised $2.6 million in funding from non-promoter investors to fund AUM growth and branch expansion.

Considering the huge non-credit gap for micro enterprises in the loan segment of less than Rs 10 lakh, the company plans to use the funds to expand its scale of operations and enhance growth opportunities.

Founded in 2019 by Mayur Modi and Deepak Aggarwal, It is a BSE-listed non-banking finance company providing unsecured and secured business loans to micro and small enterprises in Tier-III towns and below.

Presently it has 30 branches spread over five states- Rajasthan, Punjab, Haryana, Madhya Pradesh and Uttar Pradesh.

The company plans to expand its existing network of 30 branches in five states to 60 branches by FY2023 and over 100 branches in existing states with an AUM of more than Rs.400 crore by FY2023 and over Rs.1000 crore by FY2024.

“We at Moneyboxx Finance aim to provide credit to underserved micro-businesses and entrepreneurs in a cost-effective and transparent manner. The equity fundraise along with growing and continuous support from our lenders will help us to further our cause of supporting the deserving micro-enterprises and create a positive impact in this segment”, said, Deepak Aggarwal, Co-founder, Moneyboxx Finance.

“We have built a sound business model and our portfolio remains resilient despite the challenges created by the COVID-19 pandemic, reflected in our high collection efficiency and very low NPAs, attributed to our robust, tech-driven underwriting practices and strong customer connect with on-ground presence. We have built a scalable and sustainable business model in the loan segment under INR 10 Lakhs”, he added.

About Moneyboxx

They are a NBFC democratising access to capital to the undeserved micro-entrepreneurs in Tier 3 and beyond cities of the country. In a short span of two years, they have changed lives of more than 7000 lives and aim to impact 1 million lives in the next 5 years.

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