Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr

Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr

SUMMARY

The fresh capital infusion will be utilised to expand branch network, fuel business growth and shore up existing capital base to offer business loans across India

Founded in 2018 by Deepak Aggarwal and Mayur Modi, Moneyboxx Finance is a listed NBFC that offers unsecured and secured credit to underserved micro enterprises

This comes more than seven months after the lendingtech startup raised INR 24 Cr in funding through private placement from non-promoter investors in April

Lendingtech startup Moneyboxx Finance is raising INR 75 Cr ($9 Mn) as part of a strategic funding round via preferential allotment to high net-worth individuals (HNIs), family offices and individual investors.

The proposed funding will be utilised to bolster the startup’s expansion plan and fuel business growth. The capital will also nearly double its existing capital base which will be used to offer business loans across rural India. 

In a statement, Moneyboxx Finance said that it plans to expand its branch network to more than 100 by March 2024. By the end of the ongoing fiscal year 2023-24 (FY24), the startup is also eyeing a target of INR 700 Cr in assets under management (AUM). 

This comes more than seven months after the lendingtech startup raised INR 24 Cr in funding through private placement from non-promoter investors in April. Back then, the company was looking to raise equity funding of INR 160 Cr in FY24. 

Founded in 2018 by Deepak Aggarwal and Mayur Modi, Moneyboxx Finance is a listed non-banking financial company (NBFC) that offers unsecured and secured credit to underserved micro enterprises. The company disburses loans in the range of INR 70,000 to INR 10 Lakh with tenures ranging from one year to seven years. 

The platform largely operates Tier-III cities and lower and has a presence in seven states across the country including Rajasthan, Madhya Pradesh, Haryana, and Punjab, among others. With the current round, the startup has already raised INR 99 Cr in the ongoing fiscal year. It also raised another INR 48.4 Cr in capital during the previous financial year (FY23). 

In a statement on Saturday (November 11), the company said that it reported a strong turnaround in profitability as net profit jumped to INR 3.01 Cr in the first half (H1) of FY24 against a net loss of INR 4.52 Cr in H1 FY23. The company attributed the performance to a strong NIM (net interest margin) spread, a growing AUM and a beneficial operating leverage. 

The startup competes with the likes of other fintech players such as AyeFinance, Vistaar, Veritas, among others. 

Moneyboxx aims to tap into the burgeoning demand for business capital in Indian hinterlands, which are largely underserved by the organised sector. However, new fintech players in the space are leveraging technology to bridge the gap and offer small ticket loans to these small merchants and traders. 

This has spawned the rise of the Indian fintech space which now boasts of more than 2,100 startups in the country. Within this, lendingtech sector has emerged as an attractive sub-sector and is projected to account for a market opportunity of $1.3 Tn by 2030

Just last month, Oro Money, which offers gold-backed loans, raised $12.5 Mn in funding from new and existing investors.In September, even ecommerce giant was said to be tinkering with the idea of an in-house credit marketplace and had even earmarked around $15 Mn – $20 Mn for the project

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr-Inc42 Media
Lendingtech Startup Moneyboxx Finance To Raise INR 75 Cr-Inc42 Media
You’re in Good company