The startup said it will use the capital to expand its operations and fund the growth of its assets under management
Moneyboxx Finance is targeting an AUM of INR 1,000 Cr by FY24 and aims to scale its branch count to 100 by the end of March 2024
Including the latest fundraise, Moneyboxx Finance has raised INR 93.5 Cr since its inception
Listed lendingtech platform Moneyboxx Finance has raised INR 24 Cr ($2.9 Mn) in funding via private placement from non-promoter investors.
In a regulatory filing, the startup said that it will use the capital to expand its operations and fund the growth of its assets under management (AUM). The investment will also be used to tap into ‘growth opportunities’ in the sub-INR 10 Lakh microenterprises loan segment.
“… The equity fund raise along with growing and continuous support from our lenders will help us to further our cause of supporting the deserving microenterprises and ensuring sustainable economic progress for them with various beyond-lending impact initiatives,” Moneyboxx Finance’s cofounder Deepak Aggarwal said.
The startup plans to raise an equity funding of INR 160 Cr in the current financial year (FY24).
Founded in 2018 by Aggarwal and Mayur Modi, Moneyboxx Finance offers unsecured loans to micro, small and medium enterprises (MSMEs) that are largely underserved by players in the organised market.
The startup focuses on impact financing and provides business loans to micro entrepreneurs in Tier-3 and other non-metro towns and cities. With the current fundraise, Moneyboxx Finance has so far raised INR 93.5 Cr since its inception, of which INR 48.4 Cr was raised in financial year 2022-23 (FY23).
The startup claims that its AUM grew 185% year-on-year (YoY) to INR 345 Cr in March 2023 and is targeting an AUM of INR 1,000 Cr by FY24. It also claims to have doubled its branch count to 61 across six states in FY23 and is eyeing 100 branches by the end of March 2024.
Moneyboxx Finance has a presence across six states – Rajasthan, Punjab, Haryana, Madhya Pradesh, Uttar Pradesh and Chhattisgarh.
The startup primarily competes with other fintech players such as AyeFinance, Vistaar, Veritas, among others.
While most major Indian cities have plenty of options for entrepreneurs to avail credit, small traders and retailers, in the hinterlands, generally are often left out of the organised banking sector owing to a slew of reasons including lack of credit history. However, new-age lendingtech platforms deploy technology to bridge this gap and offer alternative and small ticket size loans to these small merchants and traders.
As a result, a slew of fintech players have come into prominence and raised large amounts of funding. As per Inc42, homegrown fintech startups have raised nearly $24 Bn in investments between 2014 and 2022.
Within the fintech arena, lendingtech has emerged as a big sub-sector and is well poised to account for a market opportunity of $1.3 Tn by 2030.
Earlier last month, Yellow Metal bagged $3 Mn in a seed funding round led by VC firm MSA Novo. Prior to that, another lendingtech platform LoanTap secured INR 24 Cr in a debt funding round led by Lighthouse Canton.