Moneyboxx Finance's AUM Rises 56% to Rs 837 Crore

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

Its AUM stood at Rs 536 crore in December 2023.

In a release, Moneyboxx said that in the third quarter of the current fiscal, it moved towards establishing a pan-India presence by launching operations in key southern states, including Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu.

In line with this expansion, the company said its strategic focus on secured lending yielded strong results, with secured loans accounting for 38 per cent of AUM in the third quarter of fiscal 2024-25, more than doubling from 17 per cent in the year-ago period.

Moneyboxx Finance reported a 30 per cent growth in profits in the nine months of fiscal 2024-25 at Rs 6.53 crore, compared to Rs 5.02 crore in the year-ago period. Its profit in the third quarter stood at Rs 20 lakh, down from Rs 2.01 crore in the year-ago quarter.

"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-CEO and CFO of Moneyboxx.

The company further said that it strengthened capital position by announcing an equity raise of Rs 175.8 crore (Rs 91.08 crore received in September 2024 and balance Rs 84.72 crore receivable by March 2026) which provides adequate cushion.

With the equity funds received in the second quarter of the fiscal, its net worth increased by 57 per cent to Rs 264.5 crore, and CRAR (Capital to Risk (Weighted) Assets Ratio) improved to 35.76 per cent compared to 28.28 per cent in March 2024.

With the fund raise, company's net worth increased from Rs 169 crore as of March 2024 to Rs 265 crore as of December 2024 and expected capital infusion of Rs 84.72 crore on warrants conversion will increase 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.