Moneyboxx Finance raises Rs 271 crore via equities

 Non-banking financial company (NBFC) Moneyboxx Finance Ltd on Wednesday said it has garnered Rs 271 crore through issuance of equities to support its growth plans.

The capital raise includes Rs 158 crore through preferential equity issue and Rs 113 crore through equity warrants to both promoters and non-promoters, Moneyboxx Finance said in a statement.

Moneyboxx Finance is a BSE-listed NBFC that focuses on impact financing by providing business loans to micro entrepreneurs in Tier-III and below places.

The funds will significantly strengthen the company's capital position and support its growth plans.Of the total equity capital raise, up to Rs 186 crore is expected to be infused by August 2024, which will more than double the company's existing capital base to over Rs 350 crore.

The additional capital will also allow Moneyboxx Finance to invest in technology and improve operational efficiencies.

With cumulative disbursements of over Rs 1,200 crore as of March 2024, Moneyboxx has provided loans to over 1.5 lakh borrowers, of which 59 per cent were women and 35 per cent new-to-credit.

The company's strategic plan includes expanding its branch network to over 160 branches and achieving assets under management (AUM) of Rs 1,400 crore by March 2025 from Rs 730 crore as of March 2024.

"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 Finance Ltd Co-founder Deepak Aggarwal said.

The company is supported by 32 lenders, including prominent banks like State Bank of India, HDFC Bank, and Kotak Mahindra Bank.