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SME-focussed Moneyboxx gets debt funding from BlackSoil, Caspian
Photo Credit: VCCircle

Moneyboxx Finance Ltd, a small and medium enterprise-focussed non-banking financial company, has raised Rs 10 crore ($1.35 million at current exchange rates).

The New Delhi-based company raised these funds from BlackSoil Capital, Caspian Impact Investments and Ashv Finance. This takes the total capital raised by the company this financial year to Rs 20 crore, it said in a statement.

According to its website, the company originally began operations in 2018 as Moneyboxx Capital Pvt. Ltd. It then acquired Dhanuka Commercial Ltd, an existing listed NBFC and changed its name to Moneyboxx Finance Ltd.

It will use the capital it has raised in this exercise to support its disbursement target of Rs 75 crore in the current fiscal year. This is twice the amount it disbursed in 2019-20.

“We are impressed with the core underwriting and collection model at Moneyboxx. Their sound processes have ensured a resilient portfolio even in the present environment,” BlackSoil Capital co-founder Ankur Bansal said.

Moneyboxx Finance co-CEO and CFO Deepak Aggarwal said the company had maintained a collection efficiency rate of 95% during the six-month loan moratorium period that the Reserve Bank of India to help borrowers in the wake of the coronavirus pandemic. The collection efficiency rate increase to over 99% from September, he said.

Moneyboxx Finance says it plans to raise more than Rs 80 crore by the end of March next year.

The NBFC has 22 branches across Punjab, Haryana, Rajasthan and Madhya Pradesh. It provides unsecured business loans ranging from Rs 50,000 to Rs 3 lakh, usually on a 24-month tenor, to individual borrowers in smaller cities and towns. Its customers include grocery store operators, traders and micro-manufacturers.

Shares of Moneyboxx Finance were trading 4.9% up at Rs 51.4 apiece on Monday afternoon. According to its annual report, the company reported total revenue of Rs 4.17 crore for 2019-20 and a loss of Rs 3.54 crore.

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