Funding Alert

Fintech startup Moneyboxx raises Rs 21 crore to fund the expansion

• ByStartupStory     |    June 7, 2022

Moneyboxx, a non-banking financing company (NBFC) registered on the Bombay Stock Exchange (BSE), announced on Monday that it has collected Rs 21 crore through a private placement from non-promoter investors. This follows the NBFC’s December 2021 equity financing of Rs 14.42 crore. According to insiders, the business plans to raise roughly Rs 100 crore by the end of 2022. The selling of shares to pre-selected individuals or institutions rather than on the open market is known as a private placement. 

The funds will be used by the fintech startup to expand its operations and tap into new markets. Moneyboxx, founded in 2018 by Deepak Aggarwal and Mayur Modi, provides unsecured and secured business loans to individual borrowers in tier-3 cities and beyond, including Kirana proprietors, dealers, and micro manufacturers. It offers loans in the range of Rs 70,000 to Rs 7 lakh. Rajasthan, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh are among the five states where the corporation has branches.

Deepak Aggarwal, the co-founder of the company said that despite the hurdles posed by the Covid-19 epidemic, the firm has constructed a good business model and the portfolio remains resilient. This is evidenced in the great collection efficiency and extremely few NPAs, attributable to the robust, tech-driven underwriting standards. By FY23, we want to extend our present network of 30 branches across five states to 60 branches, and by FY24, we plan to have over 100 branches, he added.

Moneyboxx had Rs 119 crore in assets under management (AUM) as of March 2022, up 92% from the previous year. In addition, the company plans to extend its activities in existing states as well as enter new ones. He stated that the company plans to reach an AUM of over Rs 400 crore by FY23 and over Rs 1,000 crore by FY24.

According to BSE filings, Moneyboxx Finance posted a standalone net loss of Rs 0.42 crore in the March 2022 quarter. The firm recorded a net loss of Rs 3.72 crore for FY22, compared to a net loss of Rs 2.97 crore the previous fiscal year.

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