Moneyboxx Finance Raises INR 176 Cr to Support Micro-Entrepreneurs and Expand to 160 Branches Moneyboxx aims to expand to 160 branches and reach an AUM of INR 1,300 crore by March 2025, up from INR 730 crore in March 2024.
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Moneyboxx Finance, a BSE-listed Non-Banking Finance Company (NBFC), recently announced the allotment of equity shares and warrants convertible to equity, amounting to INR 176 crore.
This capital raise comprises INR 63 crore from a preferential equity issue and INR 113 crore through equity warrants, contributed by both promoters and non-promoters. Of this, Moneyboxx has already received INR 91 crore, which includes INR 63 crore from the equity issue and INR 28 crore from warrants, while the remaining INR 85 crore is expected within the next 18 months.
As of June 30, 2024, the company's net worth stood at INR 174 crore. With the capital infusion, this figure has surged by over 50% as of August 31, 2024, and is projected to double with the full INR 176 crore investment. Over two-thirds of the fundraise came from promoters and existing shareholders, indicating strong confidence in Moneyboxx's growth strategy.
Deepak Aggarwal, Co-founder of 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 microentrepreneurs and contributing to their economic empowerment."
The new capital will bolster the company's goal of achieving over 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, including INR 158 crore from a preferential equity issue and INR 113 crore from equity warrants.
Founded in 1994 and renamed Moneyboxx Finance in 2019, the company has made significant strides in financial inclusion. It operates 123 branches across 11 states, disbursing over INR 1,300 crore in loans to more than 1.6 lakh borrowers, with a focus on women and new-to-credit individuals.
Moneyboxx aims to expand to 160 branches and reach an AUM of INR 1,300 crore by March 2025, up from INR 730 crore in March 2024.
