Moneyboxx Finance Raises ₹176 Crore to Boost Financial Inclusion in Rural India

On September 13, 2024, Moneyboxx Finance Limited announced raising ₹176 crore through the allotment of equity shares and convertible warrants. This includes ₹63 crore from a preferential equity issue and ₹113 crore from equity warrants, with funds coming from both promoters and non-promoters.

So far, Moneyboxx has received ₹91 crore (₹63 crore from the equity issue and ₹28 crore from warrants), with the remaining ₹85 crore from warrants expected within 18 months. As of June 30, 2024, the company’s net worth stood at ₹174 crore, which increased by over 50% by August 31, 2024, and is set to double with the full equity raise.

Over two-thirds of the funds raised came from promoters and existing shareholders, showing strong belief in the company’s business model and future growth. This capital boost will help Moneyboxx reach its target of achieving an AUM of over ₹2,500 crore by FY26, with plans to continue raising funds.

Moneyboxx is committed to promoting financial inclusion in rural India, having disbursed more than ₹1,300 crore in loans by June 2024 to over 1.6 lakh borrowers, with 58% of them being women and 30% new to credit. The company aims to expand its branch network to more than 160 locations and grow its AUM to over ₹1,300 crore by March 2025. It has also expanded into southern India by opening new branches.

Commenting on the fundraising, Mr Deepak Aggarwal, Co-founder of Moneyboxx Finance Ltd, 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.”

The company is dedicated to promoting inclusive growth and helping create sustainable livelihoods. With the additional capital, Moneyboxx Finance plans to invest in technology and enhance operational efficiency, strengthening its role as a trusted financial partner for micro-entrepreneurs in underserved areas. Moneyboxx Finance is backed by 33 lenders, including major banks such as State Bank of India, HDFC Bank, and Kotak Mahindra Bank.

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