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.
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