Moneyboxx Reports Rs 4.30 Cr Profit in Q1 FY25

Mumbai, Aug 9 (PTI) Moneyboxx Finance, which provides small business loans to micro entrepreneurs, on Friday said its net profit in the first quarter increased to Rs 4.30 crore from Rs 1.64 crore in the year-ago period.

Moneyboxx reported 93 per cent growth in AUM over the previous year, reaching Rs 746 crore as of June 30, 2024, driven by branch expansion and higher productivity with vintage and scale.

In July, the company had announced an equity raise of Rs 271 crore, which will increase its capital position and support growth plans.

The company said it is supported by 33 lenders, including prominent banks such as State Bank of India, HDFC Bank, Kotak Mahindra Bank, RBL and IDFC First Bank.

"In these challenging times, the relatively minor increase in NPAs underscores the strength of our underwriting capabilities. Additionally, the fact that over 65 per cent of the upcoming equity raise comes from existing investors, including promoters, demonstrates their strong confidence in our business model," said Deepak Aggarwal, Co-CEO and CFO of Moneyboxx Finance.

The company's gross NPA increased to 1.65 per cent of AUM in Q1 FY25 compared to 1.54 per cent in Q4 FY24 and 0.74 per cent in Q1 FY24.

Net NPA increased to 1.11 per cent for the given quarter compared to 1.04 per cent sequentially and 0.35 per cent yearly.

The company said it expects near-term credit pressure to subside as the festive demand picks up and on expected recovery in the rural economy.

Moneyboxx had a network of 104 branches spread across 8 states as of June 30, 2024.

It caters to the micro entrepreneurs in segments like livestock, kirana, retail traders, and micro-manufacturers by extending unsecured and secured business loans of Rs 1 to 10 lakh.