Moneyboxx Finance, a non-banking financial company focused on providing small-ticket business loans to micro and small entrepreneurs, reports an Assets Under Management (AUM) of ₹929 crore as of March 2025. This represents a significant growth compared to the ₹837 crore AUM reported in December 2024 and ₹720 crore in March 2024. The company anticipates a normalization of collection efficiency in the first quarter of the financial year 2025-26 (Q1 FY26). This expectation follows some near-term credit pressure experienced by the company. Moneyboxx Finance has been strategically focusing on expanding its branch network and increasing its secured lending portfolio, which stood at 38% of the AUM as of December 2024, a substantial increase from 17% in the corresponding period of the previous year. The company has also been strengthening its capital base through equity raises.
Key Insights:
\The primary focus of this news is the substantial growth in Moneyboxx Finance’s AUM, reaching ₹929 crore in March 2025. Key events include the continued expansion of the company’s operations to 160 branches across 12 states and a strategic emphasis on secured lending, which now constitutes a significant portion of its portfolio. The anticipation of collection normalization in Q1 FY26 suggests that the company might have faced some challenges in collections recently, but expects improvement in the near future. The growth in AUM indicates the company’s successful expansion and market penetration in the micro and small enterprise lending segment. The increasing focus on secured lending is likely aimed at improving asset quality and reducing credit risk.
Investment Implications:
The significant growth in AUM reflects a positive trajectory for Moneyboxx Finance. Investors may view this expansion as a sign of the company’s ability to scale its operations and reach a larger customer base. The focus on secured lending could be seen as a prudent measure to enhance the stability of the loan portfolio. The anticipated normalization of collections in Q1 FY26 is a crucial factor to monitor. If the company successfully achieves this, it could positively impact its profitability and asset quality metrics. Investors should also consider the company’s capital adequacy, which has been strengthened through recent equity raises. Monitoring the collection efficiency and the growth of the secured lending portfolio will be important for assessing the future performance of Moneyboxx Finance.
