Moneyboxx Finance raises Rs 25 crore from NBFCs, small finance banks – The Economic Times

Clipped from: https://economictimes.indiatimes.com/small-biz/money/moneyboxx-finance-raises-rs-25-crore-from-nbfcs-small-finance-banks/articleshow/81684219.cmsSynopsis

MBFL plans to utilize the proceeds to support its disbursement target in the current and upcoming financial year.

NEW DELHI:Moneyboxx FinanceLtd (MBFL) has announced that it had raised Rs 25 crore in debt from a slew of lenders – mostly non-banking finance companies (NBFCs) and small finance banks since January 2021.

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

Moneyboxx Finance AUM would 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 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.

In a statement, 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.”

“We are happy to be part of the Moneyboxx journey. 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 & Managing Director of UC Inclusive Credit Pvt Ltd. (UCIC), incubated by Unitus Capital, an impact-focused NBFC, in a statement.

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