Moneyboxx Finance funding

Moneyboxx Finance Ltd (MBFL) — a BSE-listed non-banking finance company that offers small-ticket loans to micro and small enterprises in Tier-II and III towns — on Thursday announced that it had raised Rs 25 crore in debt from a slew of lenders — mostly NBFCs and small finance banks — since January 2021.

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

According to an official statement, MBFL intends to use the freshly acquired funds to finance its disbursement target in the current and forthcoming fiscal year. It will also use the funds to undertake ‘Impact Funding,’ therefore serving the society at large.

Speaking on the new development, 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.

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

The company recorded a 30.6 percent hike in its total income for Q3FY21 at Rs 2.88 crore compared to Rs 2.21 crore for Q2FY21. It has also recorded a huge 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.

Moneyboxx also currently has job openings for the position of Branch Credit Officer, Manager- Risk & Containment Unit, and Central Credit Manager. Applications for these posts could be sent by visiting the careers section of the company’s website.