Latest News | Moneyboxx Raises Rs 10 Cr from 3 NBFCs

Mumbai, Dec 21 (PTI) Moneyboxx Finance, an NBFC that provides small-ticket loans to micro and small enterprises, on Monday said it has raised Rs 10 crore from BlackSoil Capital, Caspian Impact Investments, and Ashv Finance.

With the current round of fundraising, Moneyboxx has so far raised Rs 20 crore during the current financial year and is targeting to raise a total of over Rs 80 crore from various lenders by the end of March 2021, the non-banking financial company (NBFC) said in a statement.

Moneboxx plans to utilise the proceeds to support its disbursement target of Rs 75 crore in the current financial year, which will be two times of its lending in 2019-20, it said.

"The funds will help us further our cause of supporting the deserving micro enterprises and create a positive impact in this segment," said Deepak Aggarwal, co-CEO and chief financial officer, Moneyboxx Finance.

He further said the firm's collection efficiency was 95 per cent during moratorium and over 99 per cent from September onwards despite COVID-19 challenges. It is testimony to the fact that if underwriting and collection processes are robust, it is possible to create same or even better quality of book, he added.

BlackSoil Capital has completed over 45 deals in this space and disbursed about Rs 450 crore already in the past four years of operations. Caspian provides customised debt solutions to enterprises.

Moneyboxx started operations in February 2019 and has 22 branches spread across Punjab, Haryana, Rajasthan and Madhya Pradesh. It plans to open 24 new branches in the next financial year.

The firm focuses on disbursing small-ticket unsecured business loans to individual borrowers (livestock, kirana, traders, micro-manufacturers in tier-2 and tier-3 cities) with loans ranging from Rs 50,000 to Rs 3 lakh mostly for 24 months tenure.

Shares of Moneyboxx Finance closed at Rs 51.40 apiece on the BSE, up 4.90 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)