Moneyboxx Finance, which offers business loans to micro entrepreneurs in smaller towns, on Monday said it has raised equity capital of Rs 24 crore by way of private placement from non-promoter investors.

With this funding round, the firm said it has raised capital of Rs 48.4 crore in 2022-23 (including warrants of Rs 3.36 crore) and a total capital of Rs 93.5 crore since its inception.

"The company has strengthened its capital position with the recent equity fund raises and plans to use the funds for expanding its scale of operations and tap growth opportunities, given the huge unmet credit gap for micro enterprises in the loan segment under Rs 10 lakh," Moneyboxx stated in a release.

Moneyboxx's asset under management (AUM) touched Rs 345 crore in March 2023, growing by 185% over last year, driven by improving branch productivity and expansion.

"The equity fund raise, along with growing and continuous support from our lenders, will help us to further our cause of supporting the deserving micro enterprises and ensuring sustainable economic progress for them with various beyond-lending impact initiatives," stated Deepak Aggarwal, cofounder of Moneyboxx.

Moneyboxx has doubled its branch network to 61 branches across six states in 2022-23 and is targeting 100 branches and AUM of Rs 1,000 crore in present financial year(2023-24).

It offers unsecured and secured business loans of Rs 1-7 lakh to individual borrowers for livestock, kirana, traders as well as micro-manufacturers in tier-III and below towns.