Moneyboxx Finance Announces ₹271 Crore Capital Raise to Support Expansion

Moneyboxx Finance has announced an equity fundraising of ₹271 crore following its board meeting on July 17, 2024. The capital raise includes ₹158 crore through a preferential equity issue and ₹113 crore via equity warrants to both promoters and non-promoters.

This funding boost will significantly enhance the company’s capital position and support its expansion plans. Out of the total raised capital, ₹186 crore is expected to be infused by August 2024, more than doubling the company’s existing capital base to ₹350 crore.

Moneyboxx Finance has been at the forefront of driving financial inclusion in rural India by providing essential business loans to micro-entrepreneurs. As of March 2024, the company has cumulatively disbursed over ₹1,200 crore, benefiting more than 1.5 lakh borrowers, including co-borrowers. Notably, 59% of these borrowers were women and 35% were new-to-credit.

The company’s strategic plan includes expanding its branch network to over 160 branches and increasing its Assets Under Management (AUM) to ₹1,400 crore by March 2025, up from ₹730 crore as of March 2024. Moneyboxx Finance remains committed to fostering inclusive growth and creating sustainable livelihoods. The extra capital will allow the company to invest in technology and improve operational efficiencies, solidifying its position as a reliable financial partner for micro-entrepreneurs in underserved regions.

The company is supported by 32 lenders, including famous banks such as State Bank of India, HDFC Bank, and Kotak Mahindra Bank. This robust support network underscores the confidence of financial institutions in Moneyboxx Finance’s mission and operational strength.

With the new capital infusion, Moneyboxx Finance is well-placed to continue its growth trajectory and further its impact on rural financial inclusion. The company’s dedication to supporting micro-entrepreneurs and improving access to financial services in rural areas will drive its future success and help create more sustainable livelihoods across India.

Sharing his thoughts about the fundraise, the Co-founder of Moneyboxx Finance Ltd, Mr Deepak Aggarwal, said, “We are excited about the strong support from our investors, which highlights their confidence in our business model and growth prospects. This fresh capital will enable us to enhance our outreach and impact in rural India, providing vital financial support to microentrepreneurs and contributing to their economic empowerment.”

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