Backed by 33 lenders including SBI, ICICI Bank, and Bajaj Finance, Moneyboxx’s secured loan share surged to 38% of AUM, proving that financial stability, not just growth, is the future of MSME lending.
Moneyboxx Finance Limited, a leading provider of business loans for micro and small entrepreneurs in rural and semi-urban India, has reported a 56 percent year-over-year growth in assets under management (AUM), reaching ₹837 crore as of December 2024. In line with its strategy of financial resilience, Moneyboxx has doubled the share of secured lending, which now accounts for 38 percent of its AUM, compared to 17 percent in the third quarter of the previous fiscal year.
With an expanding network of 160 branches across 12 states, Moneyboxx is strengthening its role in MSME lending while ensuring long-term portfolio stability. The company’s rapid branch expansion, combined with a strategic focus on secured lending, signals a shift toward a more sustainable and risk-mitigated growth model.
While several NBFCs and MSME lenders face rising delinquencies in unsecured loans, Moneyboxx has strategically increased its secured loan book, which now stands at ₹318 crore. The company plans to further increase secured loans to 45 percent of AUM by March 2025, reinforcing its position as a financially disciplined and risk-averse lender.
Deepak Aggarwal, Co-CEO and CFO of Moneyboxx Finance Limited, emphasized the company’s approach to balancing expansion with financial prudence. He stated that in a volatile credit market, rapid growth without risk control is not sustainable. At Moneyboxx, a conscious effort has been made to build a stronger, more resilient loan book by increasing secured lending while expanding reach to underserved MSMEs.
Moneyboxx has strengthened its financial position with a recent equity infusion of ₹175.8 crore, which has significantly improved its net worth by 57 percent to ₹264.5 crore. The Capital Adequacy Ratio (CRAR) has increased to 35.76 percent from 28.28 percent in March 2024, providing a strong buffer against potential market fluctuations. The company is backed by 33 financial institutions, including HDFC Bank, Indian Overseas Bank, Nabkisan Finance, and Suryoday Small Finance Bank, ensuring strong financial backing for its continued expansion.
Moneyboxx has expanded its geographic footprint, growing from 86 branches in December 2023 to 160 locations across 12 states by December 2024. The company has entered key southern markets, including Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu, to provide financial access to MSMEs in underserved regions.
The unsecured loan industry has faced increasing delinquencies over the past year due to factors such as subdued rural economic growth, election-related uncertainties, extreme weather conditions, and rising indebtedness in certain borrower segments. In line with industry trends, Moneyboxx has also experienced an increase in delinquency, resulting in higher credit costs. Gross non-performing assets (NPA) on book increased to 5.60 percent of AUM as of December 31, 2024, compared to 2.78 percent in the previous quarter. Net NPA rose to 2.88 percent from 1.41 percent over the same period.
Despite these industry-wide challenges, Moneyboxx’s shift to secured lending is expected to mitigate risk and stabilize profitability in the coming quarters. The company remains focused on risk-adjusted growth to ensure financial sustainability for MSMEs while maintaining investor confidence.
As Moneyboxx enters the final quarter of fiscal year 2025, the company’s key priorities include scaling secured lending to 45 percent of AUM by March, strengthening credit risk controls, expanding its branch network, and maintaining a strong balance sheet. With a robust financial foundation, expanding lender partnerships, and a risk-mitigated lending strategy, Moneyboxx is poised to lead the next phase of growth in MSME financing.
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