Moneyboxx To Raise INR 176 Cr To Expand Its Lending Play

SUMMARY

As a part of the deal, the startup has already received INR 91 Cr of which INR 63 Cr is from preferential equity issue and INR 28 Cr from warrants

The remaining INR 85 Cr under warrants is expected to be received within 18 months of the deal

Moneyboxx looks to deploy the fresh proceeds to invest in technology and strengthen its operations to further solidify its position as a reliable financial partner for micro-entrepreneurs in underserved regions

Listed lending tech startup Moneyboxx is looking to raise INR 176 Cr (around $20.9 Mn) via issuance of equity shares on a preferential basis and warrants.

In an exchange filing, Moneyboxx said its board has approved the allotment of 20.79 Lakh equity shares on preferential basis at an issue price of INR 302.20 per equity share (including premium of Rs. 292.20) to raise INR 63 Cr.

Additionally, Moneyboxx has allocated 37.37 Lakh warrants at a price of INR 302.20 each, giving warrant holders the right to convert them into equal numbers of equity shares within a period of 18 months from the date of allotment.

As a part of the deal, the startup has already received INR 91 Cr of which INR 63 Cr is from preferential equity issue and INR 28 Cr from warrants. The remaining INR 85 Cr under warrants is expected to be received within 18 months of the deal.

The Delhi NCR-based startup’s founder Deepak Aggarwal said that the fresh infusion will enable it to expand its footprint while providing financial support to micro-entrepreneurs and supporting their economic growth.

It is aiming for an Assets Under Management (AUM) of over INR 2,500 Cr by financial year ending March 2026 (FY26).

Founded by Mayur Modi and Aggarwal in 2018, Moneyboxx offers small ticket business loans to micro and small enterprises (MSMEs) tier III cities and below. The non-banking financial company claims to operate 107 branches across eight states, including Rajasthan, Madhya Pradesh, Haryana, Punjab, Uttar Pradesh, Chhattisgarh, Bihar and Gujarat.

It focuses on underserved micro entrepreneurs in essential segments such as livestock, kirana, retail traders, micro-manufacturers, disbursing loans in the range of INR 1 Lakh to INR 10 Lakh.

Moneyboxx claims to have cumulative disbursements of over INR 1,300 Cr till June 2024, alongside providing loans to over 1.6 lakh borrowers (including co-borrowers). Its AUM was INR 730 Cr as of March 2024

In July, Inc42 reported that Moneyboxx is looking to secure INR 271 Cr through the issuance of equities.

The raise included INR 158.52 Cr through preferential equity issue and INR 112.95 Cr through equity warrants to both promoters and non-promoters.

Last year, it raised INR 75 Cr and INR 24 Cr funding in November and April respectively.

Shares of Moneyboxx ended today’s trading session 1.04% low at INR 290 on BSE.