Credit and finance for MSMEs: NBFC lender to semi-urban and rural micro entrepreneurs Moneyboxx Finance on Wednesday said it crossed Rs 300-crore mark in assets under management (AUM) and cumulative disbursements of Rs 500 crores in March 2023 on the back of strong business growth and productivity. As of March 20, the AUM stood at Rs 308 crore, growing by 155 per cent vis-a-vis Rs 121 crore as of March 2022. The company had added 26 branches in the current financial year so far to its network of 56 branches across six states.
Launched operations in February 2019, Moneyboxx Finance said it is in the process of raising equity in March 2023 and is supported by 24 lenders including banks, NBFCs, impact funds, and additionally has co-lending and business corresponding partnerships in place with lenders.
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“We see tremendous growth opportunity in Rs 1-10 lacs loan segment given the huge credit gap for micro enterprises and the presence of very few focused players in this segment. We have a robust and highly scalable business model which is powered by entirely digital process and risk analytics and have solid branch unit economics with low capex and operating costs,” said Mayur Modi, Co-founder, Moneyboxx Finance
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In terms of asset quality, the portfolio at risk or PAR 90+ days past due (loans unpaid beyond 90 days) for the company stood at 0.54 per cent of AUM as of December 2022. Moneyboxx is targetting AUM of about Rs 1,000 crore and 100 branches by FY24 with growing and continuous support from our lenders, co-lending and BC (business correspondent) partnerships, and planned capital raise, said Modi.
The company extends unsecured and secured credit between Rs 70,000 and Rs 7 lakh for tenure up to 60 months to underserved micro entrepreneurs in the essential segments viz., livestock, kirana, retail traders, and micro manufacturers.