Moneyboxx Bolsters Secured Lending To 38% Of AUM

The NBFC expands to 160 Branches in Q3 FY25,

Deepak Aggarwal (Co-CEO & CFO)

FinTech BizNews Service

Mumbai, February 18, 2025 – Moneyboxx Finance Limited, which provides business loans to micro and small entrepreneurs in rural and semi-urban India, reported 30.08% growth in profits in 9M FY25 at INR 6.53 crore, compared to INR 5.02 crore in 9M FY24. Profit growth was supported by strong 56% YoY growth in AUM to INR 837 crore as of Dec’24, driven by branch expansion and productivity of vintage branches.

In Q3 FY25, Moneyboxx accelerated its strategy of geographic diversification and secured lending expansion. The company moved towards establishing a pan-India presence by launching operations in key southern states, including Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu. In-line to this expansion, its strategic focus on secured lending yielded strong results, with secured loans accounting for 38% of AUM in Q3 FY25—more than doubling from 17% in Q3 FY24. With a target of ~45% secured lending share by March 2025, Moneyboxx continues to enhance its portfolio resilience and growth trajectory.

With the equity funds received in Q2 FY25, net worth increased by 57% to INR 264.5 crore, and CRAR improved to 35.76% compared to 28.28% in Mar’24, resulting in strong capital adequacy. 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.

Highlights of Q3 FY25 Financial Results

• Building a national franchise with a focus on secured lending: Company expanded operations to 160 branches across 12 states as of Dec’24 compared to 86 branches in 8 states in Dec’23. Geographic and product diversification improved with entry into the states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu in 9M FY25, and increasing share of secured lending, which more than doubled from 17% of AUM in Q3 FY24 to 38% in Q3 FY25.
• AUM grew by 56% to INR 837 crores as on 31-Dec-24 compared to INR 536 crore in 31-Dec-23, led by branch expansion and higher productivity of branches having 36+ months of vintage.
• 30.08% growth in net profit during 9M FY25: Total Income grew by 72% to INR 147.09 crore in 9M FY25 compared to INR 85.55 crore in 9M FY24, in line with growth in AUM. Declining opex trajectory paused at 12.6% of avg AUM during 9M FY25 compared to 12.7% in FY24 due to significant branch expansion and lower than expected AUM growth. Net interest margin remained stable, and Pre-provision operating profits doubled to INR 9.59 crore in Q3 FY25 from INR 4.65 crore in Q3 FY24, however, credit costs increased to INR 9.35 crore in Q3 FY25 from INR 1.96 crore in Q3 FY24, limiting the growth in profit after taxes. PAT declined in Q3 FY25 compared to Q2 FY25 due to increase in credit cost, mirroring the industry trend. The Company posted profit after taxes of INR 6.54 crore during 9M FY25 compared to INR 5.02 crore in Q3 FY24.
• Intensified Collection Efforts and Strong Capital Adequacy: Unsecured loan industry witnessed increase in delinquencies starting Q1 of FY25 owing to various factors, including, subdued rural economic growth, general elections, erratic weather (heatwaves, floods in certain areas) and high indebtedness in certain segments. In line with the overall industry trend, the Company experienced an increase in delinquency, and consequently, higher credit costs in FY25 year-to-date. Gross NPA (on-book) increased to 5.60% of AUM as of 31.12.2024 compared to 2.78% as of 30.09.2024. Net NPA (on-book) increased to 2.88% as of 31.12.2024 compared to 1.41% as of 30.09.2024.
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Commenting on the results, Deepak Aggarwal (Co-CEO & CFO) said, “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. With a sound business model focused on 3 P’s (People, Processes, and Product), a strong balance sheet, and focused collection efforts, we remain confident of successfully navigating the current credit cycle.”

The company also strengthened its capital position by announcing an equity raise of INR 175.8 crore (INR 91.08 crore received in Sep’24 and balance INR 84.72 crore receivable by Mar’26) which provides adequate cushion. With the fund raise, net worth increased from INR 169 crore as of Mar’24 to INR 265 crore as of Dec’24 and expected capital infusion of INR 84.72 crore on warrants conversion will increase the capital base to over INR 350 crore. Capital adequacy ratio remained healthy at 35.76% and debt-to-equity ratio low at 1.78 times as on December 31, 2024. Moreover, increasing focus on secured lending (50% of disbursements in Q3 FY25 and 38% of AUM as of Dec’24) and improving geographic diversification with presence in 12 states spread across India is expected to yield stability in asset quality going forward.