The non-banking finance company plans to raise capital in two phases. It is raising Rs 20 crore next month from high net worth individuals. This would be followed by another fundraising of Rs 80 crore later in the financial year from institutional investors, said Deepak Aggarwal, co-founder and co-CEO.
“We plan to raise capital in such a way that the capital will also support next year’s growth,” Aggarwal said.
The lender had raised Rs 14.4 crore in December last year by selling shares to non-promoting investors at Rs 95 per share with a face value of Rs 10.
The company registered as Moneyboxx Capital Private Ltd before acquiring Dhanuka Commercial Ltd – an existing listed NBFC – and renaming itself Moneyboxx Finance. It started operations in 2019.
Its assets under management stood at Rs 122 crore as of March 31. The lender aims to raise its AUM to Rs 400 crore by the end of this financial year.
Moneyboxx caters to Tier III and small town micro and small businesses primarily through digital mode. It also has 30 branches spread across five states – Rajasthan, Madhya Pradesh, Haryana, Punjab and Uttar Pradesh. About 70% of its loans are given to dairy farmers, while it also caters to kirana store owners, retailers and micro-manufacturers. Its business loans range between Rs 50,000 and Rs 3 lakh, with tenors of 6 to 36 months.
The lender plans to double its branches to 60 this year. “We are fully digital, but not fully a fintech company. Our customers cannot be supported by pure fintech as they need help with loans and repayments,” said Aggarwal.
The lender would also branch out into secured lending business from next week. It will start offering business loans in the range of Rs 2 lakh to Rs 7 lakh to existing borrowers for up to five years against mortgages such as houses or shops, the CEO said. “As these loans would be of a larger amount, the majority of our portfolio will likely be secured after three years,” he said.
The company has outstanding debt of Rs 92 crore at the end of March in the form of term loans and securitization agreements with 18 lenders, including AU Small Finance Bank, DCB Bank, Hinduja Leyland Finance and Vivriti Capital .