Indian micro-credit platform Moneyboxx Finance is planning to raise $13.1m (INR1bn) to spur growth, The Economic Times reported.
Moneyboxx, which is a non-banking finance company (NBFC) focused on offering credit to underserved micro-entrepreneurs, plans to raise the funds in two phases.
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The first phase includes raising INR200m from high-net-worth individuals and Moneyboxx is likely to close this round in May 2022, the firm’s co-founder and co-CEO Deepak Aggarwal said, adding that the remaining INR800m is expected to be raised later in the financial year from institutional investors.
“We plan to raise the capital in such a way that the capital also takes care of next year’s growth as well,” Aggarwal was quoted as saying.
The NBFC, which started operations in 2019, had raised around INR144m in December 2021 from non-promoter investors.
As of 31 March 2022, Moneyboxx had INR1.22bn in assets under management (AUM) and plans to take that figure to INR4bn by the end of this financial year.
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By GlobalDataThe firm offers its services digitally in tier-III and smaller towns of the country, where it has 30 branches.
“We are fully digital but not fully a financial technology firm. Our customers cannot be catered to by pure fintech as they need support in borrowing as well as repayments,” Aggarwal said.
The credit platform plans to double its branch network this year and will venture into a secured loan business soon.
Currently, it offers credit between INR50,000 and INR300,000 for a tenure between six months and 36 months.
The new loans will range from INR200,000 to INR700,000, which will be offered for up to five years against mortgages such as houses/shops.
“As these loans would be of larger ticket size, the majority of our book is likely to be secured after three years,” Aggarwal further noted.
