Fintech

Lendingtech Startup Moneyboxx Finance to Secure $9 Million in Funding for Rural Expansion

• ByStartupStory     |    November 13, 2023

Moneyboxx Finance, the Indian lendingtech startup, is poised to secure INR 75 Crore ($9 million) in a strategic funding round, predominantly through preferential allotment to high-net-worth individuals (HNIs), family offices, and individual investors. This funding injection is earmarked to bolster the startup’s expansion initiatives, nearly doubling its existing capital base, thereby facilitating the provision of business loans in rural India.

Founded in 2018 by Deepak Aggarwal and Mayur Modi, Moneyboxx Finance operates as a listed non-banking financial company (NBFC). The firm specializes in providing unsecured and secured credit to underserved micro-enterprises situated in Tier-III cities across seven states. In the current fiscal year, the startup has already raised INR 99 Crore, boasting a net profit of INR 3.01 Crore in the first half of FY24.

Moneyboxx Finance’s strategic vision involves an aggressive expansion plan, intending to increase its branch network to over 100 by March 2024. The company is targeting an assets under management (AUM) milestone of INR 700 Crore by the conclusion of FY24. This follows the startup’s earlier funding injection of INR 24 Crore in April and its ambitious equity funding goal of INR 160 Crore in the current fiscal year.

Competing in the lendingtech sector against players such as AyeFinance and Vistaar, Moneyboxx Finance aims to meet the growing demand for business capital in underserved regions of India, particularly in Tier-III cities. The broader fintech landscape in India, which boasts over 2,100 startups, is anticipated to present a substantial market opportunity, projected to reach $1.3 trillion by 2030.

In a parallel development within the fintech space, Oro Money, specializing in gold-backed loans, recently secured $12.5 million in funding. This funding injection is part of Oro Money’s strategic considerations, including the exploration of an in-house credit marketplace, with a budget ranging from $15 million to $20 million, as disclosed in September.

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