Moneyboxx To Raise INR 271 Cr To Fuel MSME Lending

Listed lendingtech startup Moneyboxx is looking to raise INR 271 Cr (around $32.4 Mn) through a mix of preferential issue and warrants.

In an exchange filing on Wednesday (July 17), Moneyboxx said that its board passed a special resolution to issue up to 52,45,736 equity shares on a preferential basis (preferential issue) at an issue price of INR 302.2 each to raise INR 158.52 Cr.

The company’s board also approved the issuance of up to 37,37,745 warrants, convertible into equal numbers of equity shares, at an issue price of INR 302.2 each to raise INR 112.95 Cr, the filing added.

The Delhi NCR-based startup plans to use the fresh funds to fuel its growth and expand its reach in rural India, it said in a statement.

Commenting on the fundraise, Deepak Aggarwal, cofounder of Moneyboxx, said, “This fresh capital will enable us to enhance our outreach and impact in rural India, providing vital financial support to micro-entrepreneurs and contributing to their economic empowerment.”

Moneyboxx will use a part of the proceeds to strengthen its teck stack and increase operational efficiency.

Founded by Mayur Modi and Aggarwal in 2018, Moneyboxx provides 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 disbursed loans worth INR 1,200 Cr to more than 1.5 Lakh customers, of which 59% were women and 35% new-to-credit. The company plans to expand its branch network to over 160 branches and achieve an AUM of INR 1,400 Cr by March 2025 from INR 730 crore as of March 2024.