Moneyboxx, the BSE-listed NBFC, which provides small-ticket business loans to micro and small enterprises, is expecting to register nearly 200 per cent growth in business with total loans touching close to ₹350 crore by the end of FY23. The company had an AUM (asset under management) of ₹119 crore at the end of FY22.
Plans are afoot to touch an AUM of close to ₹1000 crore by the end of FY24 backed by a steady expansion in footprint into newer geographies and addition of new product categories.
According to Deepak Aggarwal, Co-Founder, Moneyboxx, the NBFC grew from an AUM of ₹29 crore in FY20 to ₹62 crore in FY21 and ₹119 crore in FY22. It has a base of around 20,000 active borrowers at present. The company recently commenced operations in Chattisgarh and is also looking to foray into Gujarat during the current year and plans to add Bihar early next fiscal. It currently has 50 branches spread across Rajasthan, Punjab, Haryana, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh.
“We are looking to add 10 more branches in the next two months, taking the total number to 60 by the end of this fiscal. We plan to open 45 new branches next year, thereby taking the total branch network to over 100 by next fiscal,” Aggarwal told businessline.
Asset quality
Moneyboxx provides unsecured and secured business loans ranging from ₹70,000 to ₹7 lakh to individual borrowers for income generation purposes in essential and important segments, including livestock, kirana, traders, as well as micro-manufacturers primarily in Tier-III and below towns and cities. Nearly 45 per cent of the company’s borrowers are women and close to 35 per cent are new to credit consumers. Around 65 per cent of its borrowers are in the livestock segment, he said.
“We have a branch-led model, which ensures that our underwriting is very good. We have employed full-time veterinary doctors who work closely with customers to help them understand various issues and tell them about improving milk yield through quality feed, how to maintain cattle health etc,” he said.
The company claims to have a collection efficiency of 98-99 per cent and has non-performing assets (NPA) less than one per cent.