[Funding alert] BSE listed NBFC Moneyboxx Finance raises debt of Rs 10Cr from BlackSoil, Caspian, and others
Finance Ltd (MBFL), a BSE listed non-banking finance company that provides small-ticket loans to micro and small enterprises in Tier-II and III towns, on Monday announced it raised Rs 10 crore from three NBFCs — BlackSoil Capital, Caspian Impact Investments, and Ashv Finance Pvt Ltd.
The New Delhi and Mumbai-based Moneyboxx has so far raised Rs 20 crore during the current fiscal. It is targeting to raise a total of over Rs 80 crore from various lenders by the end of March 2021.
The NBFC plans to utilise the proceeds to support its disbursement target of Rs 75 crore in the current fiscal, which will be two times of its lending in 2019-20.
“The funds will help us to further our cause of supporting the deserving micro-enterprises and create a positive impact in this segment,” said Deepak Aggarwal, Co-CEO and CFO, Moneyboxx Finance Ltd.
“Our collection efficiency of 95 percent during the moratorium, and over 99 percent from September onwards despite COVID-19 challenges is testimony to the fact that if underwriting and collection processes are robust, it is possible to create the same or even better quality of book along with a sustainable and profitable business model in the unsecured lending segment,” Deepak added.
Moneyboxx — which started operations in February 2019 — has 22 branches spread across four states —Punjab, Haryana, Rajasthan, and Madhya Pradesh, and plans to open 24 new branches in FY22. Its medium-term aim is to build a Rs 1,000 crore asset under management (AUM) within the next three years.
MBFL focusses on disbursing small ticket unsecured business loans to individual borrowers (Livestock, Kirana, Traders, Micro-manufacturers in Tier-II and III cities) with loans ranging from Rs 50,000 to 3,00,000, mostly for 24 months tenure.
“We are impressed with the core underwriting and collection model at Moneyboxx. Their sound processes have ensured a resilient portfolio even in the present environment. It is our pleasure to support them in building up their portfolio and expanding their presence in new geographies,” added Ankur Bansal, Co-founder and Director of BlackSoil Capital, a specialised credit platform focussed on providing debt solutions to niche growth companies.
BlackSoil has completed over 45 deals in this space and has disbursed Rs 450 crore in the past four years of operations.
“We are delighted to be a part of Moneyboxx's growth story, and hope to play a vital role in their journey as they leverage technology, strong credit culture, and on-field presence to reach out to the micro-entrepreneurs and SMEs, who lack access to formal credit," stated Avishek Gupta, Investment Director at Caspian Debt, which provides customised debt solutions to professionally managed enterprises that work towards creating positive social and environmental impact.