BSE-listed NBFC Moneyboxx Finance, which provides business loans to micro entrepreneurs in tier-III towns and below places, aims to grow its assets under management (AUM) to ₹1,000 crore by FY24 from ₹300 crore in March 2023.

Cumulative disbursements for the company crossed the milestone of ₹500 crore, within four years since commencement of operations in February 2019. The company has given loans to 30,000 households of which 53 per cent were women and 35 per cent were new-to-credit borrowers.

Robust growth

Strong business growth and productivity led to robust growth in AUM to ₹308 crore as of March 20, 2023, growing 2.5-fold from ₹121 crore a year ago. The company added 26 branches in FY23 taking the total to 56 branches across 6 states. It plans to double the network to 100 branches in FY24.

Moneyboxx is in the process of raising equity and is supported by 24 lenders including leading banks, NBFCs, impact funds, and additionally has co-lending and business corresponding partnerships in place with lenders, it said in a release.

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“We see tremendous growth opportunity in ₹1-10 lakh loan segment given the huge credit gap for micro enterprises and presence of very few focused players in this segment. We have a proven business model to service this segment with robust underwriting practices and one of the best asset quality metrics in the industry,” Co-Founder Mayur Modi said.

Loans to underserved

The company gives loans to underserved micro entrepreneurs in segments such as livestock, kirana, retail traders, micro-manufacturers, by extending unsecured and secured business loans between ₹70,000 and ₹7 lkah for up to 60 months.

The portfolio at risk, in terms of loans due over 90 days, stood at 0.54 per cent of the AUM as of December 2022.

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