Moneyboxx Finance Reports 56% Surge In AUM, Expands Pan-India Presence

Moneyboxx Finance, which provides business loans to micro and small entrepreneurs, has reported a 56% increase in its assets under management to Rs 837 crore by the end of December 2024, driven by branch expansion and enhanced productivity.

The company's AUM was Rs 536 crore in December 2023.

In a release, Moneyboxx stated that during the third quarter of the current fiscal year, it made strides toward establishing a pan-India presence by launching operations in key southern states, including Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu.

Aligned with this expansion, the company highlighted that its strategic focus on secured lending yielded strong results, with secured loans accounting for 38% of AUM in the third quarter of fiscal 2024-25, more than doubling from 17% in the same period the previous year.

Moneyboxx Finance also reported a 30% growth in profits for the nine months of fiscal 2024-25, reaching Rs 6.53 crore, compared to Rs 5.02 crore in the previous year. However, its profit in the third quarter stood at Rs 20 lakh, down from Rs 2.01 crore in the same quarter the previous year.

"Remarkable progress was made during the year on various strategic fronts – pivoting to secured lending, geographic diversification with entry into south India, and gaining strong support from lending partners and equity investors," said Deepak Aggarwal, Co-chief executive officer and chief financial of Moneyboxx.

The company further announced that it has strengthened its capital position by raising Rs 175.8 crore in equity, with Rs 91.08 crore received in September 2024 and the remaining Rs 84.72 crore expected by March 2026, providing a sufficient cushion.

The equity funds received in the second quarter of the fiscal year boosted its net worth by 57% to Rs 264.5 crore, and improved the CRAR (Capital to Risk (Weighted) Assets Ratio) to 35.76% from 28.28% in March 2024.

Following the fundraise, the company's net worth increased from Rs 169 crore in March 2024 to Rs 265 crore in December 2024. The anticipated capital infusion of Rs 84.72 crore from warrant conversion is expected to elevate the capital base to over Rs 350 crore.

The company is supported by 33 lenders, including 12 banks and recently onboarded Indian Overseas Bank, Bajaj Finance, Nabkisan Finance, and Suryoday Small Finance Bank.

Moneyboxx expanded operations to 160 branches across 12 states as of December 2024 compared to 86 branches in 8 states in December 2023.

(With PTI Inputs)