Moneyboxx Finance Limited, a BSE-listed NBFC that focuses on impact financing by providing business loans to micro entrepreneurs in Tier-III cities and below, secured INR 20 crores term loan from Maanaveeya Development & Finance Private Limited (Maanaveeya), an Indian subsidiary of Oikocredit, a 40-year-old Global Development Financing Institution that responds to the needs of businesses that create jobs and income for disadvantaged people. The Company will utilize the funds for onward lending to the micro entrepreneurs.
Moneyboxx is supported by 24 lenders, including leading banks (State Bank of India, IDFC First Bank, DCB Bank, AU SFB) and NBFCs and impact funds and has raised cumulative debt of close to INR 400 crores. With planned equity raise and continuous support from lenders and co-lending partnerships, the company aims to transform lives of micro entrepreneurs in India and is targeting AUM of about INR 1,000 crores by FY24 from current AUM of INR 290 Crore as of Feb 2023. The Company plans to increase its branch network to 100 by FY24 from current 56 branches.
Deepak Aggarwal, Co-Founder, Moneyboxx said, “We are excited and thankful to Maanaveeya for this vote of confidence in our extremely successful and unique phygital business model, wherein we not only provide growth capital to micro entrepreneurs, but also supplement this with significant beyond-lending initiatives. The loan from Maanaveeya will help boost our efforts in fostering financial inclusion by addressing the unmet and growing need for credit in the INR 1-10 lacs small business loan segment. With a robust and highly scalable business model in place, backed by an entirely digital process and risk analytics capabilities, we are poised to create a greater positive impact on small businesses across small towns.”
Moneyboxx is driving financial inclusion by catering to the unmet credit needs of micro entrepreneurs in Tier-3 and below regions. With cumulative disbursements of over INR 471 crores up to Feb’23, it has transformed lives of over 28,300 borrowers, of which 53% were women and 35% new-to-credit. The company has engendered sustainable and transformational changes in borrowers’ lives through various impact initiatives such as free vet consultation service for livestock borrowers and free plantation of fruit-bearing trees for its borrowers who own agricultural land, thereby providing them with an alternate source of income.