Moneyboxx Finance, a BSE-listed Non-Banking Finance Company (NBFC), has successfully raised Rs 176 crore to strengthen its financial support for micro-entrepreneurs across rural India. This funding will also aid the company in expanding its branch network to 160 locations by March 2025.
Breakdown of the Capital Raise
The capital raise is divided into two parts:
- Rs 63 crore from a preferential equity issue
- Rs 113 crore from equity warrants convertible to equity.
As of August 31, 2024, Moneyboxx has already received Rs 91 crore, with Rs 63 crore from the equity issue and Rs 28 crore from the warrants. The remaining Rs 85 crore is expected within the next 18 months.
Impact of the Capital Infusion
With this new capital, Moneyboxx’s net worth has grown by over 50%, following a previous net worth of Rs 174 crore as of June 30, 2024. When the full Rs 176 crore is realized, the company’s net worth is projected to double. The majority of the funds came from promoters and existing shareholders, showcasing strong confidence in the company’s strategy and future growth.
Micro-Entrepreneurs in Rural India
Deepak Aggarwal, Co-founder of Moneyboxx Finance, expressed excitement over the robust support from investors. He stated, “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.”
Moneyboxx has long been focused on financial inclusion, particularly targeting women and new-to-credit individuals. Since its renaming in 2019, the company has disbursed over Rs 1,300 crore in loans to more than 1.6 lakh borrowers through its 123 branches across 11 states.
Growth Projections
Moneyboxx aims to expand its branches from 123 to 160 by March 2025. The company also plans to achieve an Assets Under Management (AUM) of Rs 1,300 crore by March 2025, compared to Rs 730 crore in March 2024. Looking ahead, Moneyboxx is targeting over Rs 2,500 crore in AUM by FY26.
This recent fundraise follows a previous equity issuance in July 2024, where Moneyboxx secured Rs 271 crore, further demonstrating its growing impact on financial inclusion and support for micro-entrepreneurs.
