Moneyboxx Finance is non-deposit-taking, base-layer NBFC engaged in the business of providing business loans to micro-enterprises.
Lendingtech Moneyboxx Finance, a BSE-listed company that provides small ticket business loans to micro-enterprises, launched a new branch in Firozabad, Uttar Pradesh. With the opening of this branch, the company now has 100 branches across the country and all set to expand 60 new branches by FY25.
The company had revealed the plans to expand its branches in November 2023, when it raised Rs 75 crore ($9 Million) in a strategic funding round from HNIs, Family Offices, and Individual Investors.
In a statement, Moneyboxx Finance had said it plans to expand its branch network to more than 100 by March 2024. By the end of the ongoing fiscal year 2023-24 (FY24), the lendingtech is also eyeing a target of Rs 700 crore in assets under management (AUM).
As a part of this expansion, Moneyboxx aims to meet growing and unmet credit needs of micro and small businesses in the state, the company said in a statement. It caters to the underserved micro entrepreneurs in the essential segments (livestock, kirana, retail traders, micro-manufacturers) by extending unsecured and secured business loans from Rs 70,000 to 10,00,000 for a loan tenure from 12 months to 84 month.
With cumulative disbursements of over Rs. 1200 crore as of March 2024, it has transformed lives of over 1,10,000 borrowers, of which 57 per cent were women and 35 per cent new-to-credit, the company said.
With the recent opening of new branches in Bihar and Gujarat, the company now has branches across eight states which includes Rajasthan, Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Bihar and Gujarat.
Currently supported by 31 lenders, including prominent banks like State Bank of India, HDFC Bank, and Kotak Mahindra Bank, the company has strengthened its financial position. Moneyboxx has strong asset quality with one of the lowest NPAs in the segment owing to its focus on essential sectors and robust underwriting practices.
Commenting on the recent branch expansion, Mayur Modi, co-founder, Moneyboxx Finance Ltd said, “Our new branches will cater to the credit needs of the underserved section of borrowers in Tier-3 and below places. With our differentiated and proven ‘phygital’ business model which involves strong customer connect fully digital approach, we aim to impact 1 million lives over the next five years.”
Through our various beyond lending initiatives such as complementary veterinary services, agroforestry initiatives, funding of biogas digesters, we aim to make a noticeable impact on the lives of our borrowers and environment.
Indian fintech industry, which currently hosts over 2,100 start-ups. Among these, the lendingtech sector has surfaced as a compelling sub-sector, expected to represent a market opportunity of $1.3 trillion by 2030.