Moneyboxx Finance raises Rs25cr from slew of NBFCs and small finance banks; Stock soars 4%

Moneyboxx Finance Ltd (MBFL) has announced that it had raised Rs25cr in debt from a slew of lenders — mostly non-banking finance companies (NBFCs) and small finance banks since January 2021.

As many as nine new lenders including AU Small Finance Bank, Hinduja Finance, Ambit Finance, InCred Financial, UC Inclusive Credit, Profectus Capital, Capri Global and others have reposed faith in Moneyboxx Finance by providing debt support to the company.

MBFL plans to utilize the proceeds to support its disbursement target in the current and upcoming financial. It will also utilize the proceeds to undertake ‘Impact Funding’, thus benefitting the society at large.

Earlier this fiscal, Moneyboxx Finance has raised debt of Rs20cr from three NBFCs. With this MBFL has been able to diversify its borrowing profile by adding twelve new lenders in this fiscal year, thus taking its total lender count to Fourteen.

The companyalso plans to raise over Rs200cr in 2021-22 with a mix of debt and equity financing.

Moneyboxx Finance AUM would grow at over 100% in FY2021 despite negligible business in HIFY21 due to CoVID-19. The company reported 30.6% increase in its total Income for Q3FY21 at Rs2.88cr compared to Rs2.21cr for Q2FY21.

It has also registered whopping 109.9% growth in its loan book, which stood at Rs45.38cr as on 31st December, 2020 in comparison of a loan book of Rs21.62cr as on 31st December, 2019.

Commenting on the debt raised, Deepak Aggarwal, Co-CEO and CFO, Moneyboxx Finance Ltd.said, “These funds will not only assist us in ramping up operations and expansion, but also help us to amplify profitability while bringing necessary credit to people and sectors who need it the most and create economic value for them.” We continue to build large base of lending partners every month and funding amountofeach partneris likely to increase in subsequent tranches.

“Ourcollection efficiency of 95 percent during the moratorium, much higher than the industry average, and over 99 percent from September onwards despite the challenges faced by restrictions owing to the pandemic demonstrates the robustness and sophistication of our collection and underwriting processes. It also establishes, beyond reasonable doubt, that building a book comprising of assets of excellent quality is possible in the unsecured lending segment”, added Deepak.

“We are happy to be part of the Moneyboxx journey, as they address an important credit problem for the under-served micro-entrepreneurs in India. Their strong underwriting model along with collection processesis likely to ensure that the portfolio will remain resilient, even during the pandemic”, stated Abhijit Ray, Co-Founder & Managing Director of UC Inclusive Credit Pvt Ltd. (UCIC), incubated by Unitus Capital, an impact-focussed NBFC.