[Funding alert] BSE-listed Moneyboxx Finance raises debt of Rs 25Cr from a slew of Indian NBFCs

MoneyboxxFinance 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 Thursday said it raised Rs 25 crore in debt from a slew of lenders — mostly NBFCs and small finance banks — since January 2021. 

The NBFC stated that nine new lenders, including AU Small Finance Bank, Hinduja Finance, Ambit Finance, InCredFinancial, UCInclusive Credit, Profectus Capital, Capri Global, and others have invested in the company.

According to an official statement, MBFL plans to utilise the proceeds to support its disbursement target in the current and upcoming fiscal year. It will also utilise the proceeds to undertake ‘Impact Funding,’ thus benefiting the society at large.

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 a large base of lending partners every month, and the funding amount of each partner is likely to increase in subsequent tranches," he added.

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“Our collection efficiency of 95 percent, during the moratorium, is 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,” said Deepak.

Earlier this fiscal, Moneyboxx Finance had raised a debt of Rs 20 crore from three NBFCs. With this, MBFL has been able to add 12 new lenders in this fiscal, thus taking its total lender count to 14.

The company reported a 30.6 percent increase in its total income for Q3FY21 at Rs 2.88 crore compared to Rs 2.21 crore for Q2FY21. It has also registered a whopping 109.9 percent growth in its loan book, which stood at Rs 45.38 crore as of December 31, 2020, in comparison to a loan book of Rs 21.62 crore as of December 31, 2019.

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