Moneyboxx Finance raises Rs 25 cr from NBFCs, small finance banks

By: |
March 25, 2021 1:45 PM

The company also plans to raise over Rs 200 crore in 2021-22 with a mix of debt and equity financing.

Securitisation is the process of pooling and repackaging homogenous illiquid financial assets into marketable securities that can be sold to investors.Securitisation is the process of pooling and repackaging homogenous illiquid financial assets into marketable securities that can be sold to investors.

Moneyboxx 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, today announced that it has raised Rs 25 crore 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, UCInclusive 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 year. It will also utilize the proceeds to undertake ‘Impact Funding’, thus benefiting the society at large.

Earlier this fiscal, Moneyboxx Finance had raised debt of Rs 20 crore 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 14.

The company also plans to raise over Rs 200 crore in 2021-22 with a mix of debt and equity financing.

Moneyboxx Finance AUM expects to grow at over 100% in FY2021 despite negligible business in H1FY21 due to Covid-19. The company reported a 30.6% 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% growth in its loan book, which stood at Rs 45.38 crore as on December 31, 2020 in comparison to a loan book of Rs 21.62 crore as on December 31, 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 a large base of lending partners every month and the funding amount of each partner is likely to increase in subsequent tranches.”

“Our collection 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 consisting of assets of excellent quality is possible in the unsecured lending segmen,” added Deepak.

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