Moneyboxx Finance Limited – a BSE-listed NBFC that provides small-ticket business loans to micro entrepreneurs in Tier-III cities and below, secured INR 50 crores term loan from SBI for a period of 4 years. The company will utilize the funds for onward lending to the micro-entrepreneurs in the agricultural and allied sectors.
This loan from SBI, along with planned equity raise through private placement within next three months and strong debt pipeline from multiple private and PSU banks, will ensure adequate liquidity in alignment with the company’s plans to ramp-up the AUM from over INR 190 Crore as of Oct’22 to around INR 400 crores by Mar’23.
Deepak Aggarwal, Co-Founder, Moneyboxx said, “We are very excited and thankful to SBI for this vote of confidence in our extremely successful and unique phygital business model, wherein we not only provide growth capital to small and marginal agri-entrepreneurs, but also supplement this with significant beyond-lending initiatives, while maintaining pristine asset quality. The term loan from SBI will help boost our efforts in fostering financial inclusion by addressing the unmet and growing need for credit in the INR 1-10 lacs small business loan segment. With a robust and highly scalable business model in place, backed by an entirely digital process and risk analytics capabilities, we are poised to create a greater positive impact on small businesses across small towns.”
Moneyboxx is driving financial inclusion by catering to the unmet credit needs of micro entrepreneurs in Tier-3 and below regions. With cumulative disbursements of over INR 320 crores, it has transformed lives of over 20k borrowers, of which 45% were women and 38% new-to-credit. The company has engendered sustainable and transformational changes in borrowers’ lives through various impact initiatives such as free vet consultation service for livestock borrowers and free plantation of fruit-bearing trees for its borrowers who own agricultural land, thereby providing them with an alternate source of income.
The company’s current branch network stood at 47 branches (opened 17 new branches in this fiscal) and plans to take its branch network to 60 by the end of this financial year. On the back of a strong debt pipeline and planned equity fund raise, the company is confident to reach AUM of INR 400 crores by FY23 and simultaneously ramp up its financial inclusion efforts.
About Moneyboxx Finance Limited
Beginning operations in February 2019, Moneyboxx currently has 47 branches spread across five states – Rajasthan, Punjab, Haryana, Madhya Pradesh, and Uttar Pradesh. Moneyboxx provides unsecured and secured business loans ranging from INR 100,000 to INR 700,000 to individual borrowers for income generation purposes in essential and important segments (livestock, kirana, traders as well as micro-manufacturers) in Tier-III and below towns.