Non-bank lender Moneyboxx Finance has raised Rs 176 crore ($21 million) of capital to support growth plans, the company said in a statement.
The capital raise includes Rs 63 crore raised via preferential equity issue and Rs 113 crore via equity warrants, from both promoters and non-promoters.
The company focusses on impact investing by providing business loans to micro entrepreneurs in tier-III and below areas. The networth of the company stood at Rs 174 crore as on 30 June.
The fund raise puts the company in a position to achieve a target of over Rs 2,500 crore by 2025-26 (April-March). The company plans to keep raising capital going ahead.
With cumulative disbursements of over Rs 1,300 crore up till June 2024, the company has provided loans to 160,000 borrowers. Of this, 58% were women and 30% were new-to-credit. The company’s strategic plan includes expanding its branch network to over 160 branches and increasing its assets under management to over Rs 1,300 crore by March 2025 from Rs 730 crore as on 31 March.
“This fresh capital will enable us to enhance our outreach and impact in rural India, providing vital financial support to micro-entrepreneurs and contributing to their economic empowerment,” Deepak Aggarwal, co-founder, Moneyboxx Finance said.
The company is supported by 33 lenders, including State Bank of India, HDFC Bank, and Kotak Mahindra Bank.
