November 17, 2024
Moneyboxx Finance secures Rs 176 Crore to drive growth and expand rural outreach #IndiaFinance

Moneyboxx Finance secures Rs 176 Crore to drive growth and expand rural outreach #IndiaFinance

CashNews.co

NEW DELHI: Moneyboxx Finance raised Rs 176 crore to support its future growth plans, as per its filing on Friday. The non-banking financial company that provides business loans to micro entrepreneurs said that it has allotted equity shares and warrants convertible into equity amounting for Rs 176 crore.
The capital raised includes Rs 63 crore via preferential equity issue and Rs 113 crore via equity warrants from both promoters and non-promoters.
“The company has received Rs 91 crore, which includes Rs 63 crore from preferential equity issue and Rs 28 crore from warrants, and the balance Rs 85 crore pursuant to warrants is receivable within 18 months,” Moneyboxx Finance said.
Deepak Aggarwal, co-founder of Moneyboxx Finance, said that the fresh capital would aid in enhancing the company’s outreach and impact in rural India, providing vital financial support to micro-entrepreneurs and contributing to their economic empowerment.
The net worth of the company stood at Rs 174 crore as on June 30, 2024, which has witnessed more than a 50 per cent growth by August 31, 2024 and will double with the total equity raise of Rs 176 crore, it said.
More than two-thirds of the funds have come from promoters and existing shareholders, demonstrating their confidence in the business model and growth prospects.
“The fund raise puts the company in a strong position to achieve its target of over INR 2,500 crore AUM by FY26, and the company plans to keep raising capital going forward,” the company added.
Moneyboxx Finance serves micro entrepreneurs across various sectors such as livestock, kirana, retail traders, micro-manufacturers by extending unsecured and secured business loans from Rs 1-10 lakh. At present, the enterprise has 123 branches spread across 11 states.