Moneyboxx Finance Secures INR 176 Crore for Loan Expansion in Rural India

Moneyboxx Finance, a BSE-listed Non-Banking Finance Company (NBFC), has announced a significant capital raise of INR 176 crore through a combination of equity shares and warrants convertible to equity. This injection of funds will further bolster the company's commitment to providing loans and financial support to microentrepreneurs and underserved communities in rural India.

• The capital raise includes INR 63 crore from a preferential equity issue and INR 113 crore through equity warrants, with contributions coming from both promoters and non-promoters.
• Moneyboxx has already received INR 91 crore, and the remaining INR 85 crore is expected within the next 18 months.

Impact of Capital Raise on Moneyboxx's Financial Position

This capital infusion has significantly strengthened Moneyboxx's financial position, propelling its net worth by over 50% as of August 31, 2024, and projected to double upon receiving the full INR 176 crore investment. The substantial participation of promoters and existing shareholders underscores their confidence in Moneyboxx's growth strategy and future prospects.

Expanding Loan Reach and Impact in Rural India

Deepak Aggarwal, Co-founder of Moneyboxx Finance, expressed enthusiasm about the strong investor support, highlighting their confidence in the company's business model and growth potential. He emphasized that the new capital will enable Moneyboxx to expand its outreach and impact in rural India, providing vital financial support to microentrepreneurs and contributing to their economic empowerment.

Driving Growth and Achieving AUM Targets

With the infusion of fresh capital, Moneyboxx is well-positioned to accelerate its growth trajectory. The company is aiming to achieve an impressive INR 2,500 crore in Assets Under Management (AUM) by FY26. This latest fundraise follows a previous equity issuance in July 2024, where Moneyboxx secured INR 271 crore, further demonstrating its strong financial performance and growth potential.

Commitment to Financial Inclusion and Microfinance

Founded in 1994 and rebranded as Moneyboxx Finance in 2019, the company has established itself as a leading player in financial inclusion, particularly in rural India. With a network of 123 branches across 11 states, Moneyboxx has disbursed over INR 1,300 crore in loans to more than 1.6 lakh borrowers, emphasizing its commitment to empowering women and individuals with limited credit history.

Future Plans and Expansion Strategy

Moneyboxx has ambitious plans for future growth, aiming to expand its branch network to 160 locations and reach an AUM of INR 1,300 crore by March 2025. The company is actively expanding its loan portfolio and leveraging its strong financial foundation to achieve its strategic objectives.

Key Takeaways

• Moneyboxx Finance secures INR 176 crore in capital through equity shares and warrants to fuel its loan expansion efforts.
• The capital raise strengthens Moneyboxx's financial position and reinforces investor confidence in the company's growth strategy.
• The funds will enable Moneyboxx to expand its loan reach and impact in rural India, providing vital financial support to microentrepreneurs and contributing to financial inclusion.
• Moneyboxx is committed to achieving an AUM of INR 2,500 crore by FY26, further solidifying its position as a leading microfinance provider in the country.