National, May 29, 2025: Moneyboxx Finance Limited (Moneyboxx), a leading NBFC providing business loans to micro and small entrepreneurs in rural and semi-urban India, reported a robust 56% year-on-year growth in Total Income, reaching INR 199.23 crore in FY25 compared to INR 127.96 crore in FY24. The strong income growth was primarily driven by an increase in AUM and strategic branch expansion.

Moneyboxx made further progress in FY25 on its strategy of geographic diversification and increasing secured lending. The Company moved towards establishing a pan-India presence by opening branches in the south Indian states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu. Further, increased focus on secured lending was demonstrated by secured loans representing 45% of AUM as on Mar’25 compared with 24% in Mar’24, and targeting ~65% by Mar’26.

With the equity funds received in FY25, net worth increased to INR 260.7 crore, and CRAR improved to 29.25% in Mar’25 compared to 28.28% in Mar’24, resulting in strong capital adequacy. The Company concluded its highest-ever NCD raise of INR 185 crore in FY25. The Company is supported by 33 lenders, including 12 banks.

Highlights of Q4 & FY25 Financial Results

• National franchise with focus on secured lending: Company expanded operations to 163 branches across 12 states as of Mar’25 compared to 100 branches in 8 states in Mar’24. Geographic and product diversification improved with entry into the states of Telangana, Andhra Pradesh, Karnataka and Tamil Nadu in FY25, and increasing share of secured lending, which approximately doubled to 45% in Mar’25 from 24% of AUM in Mar’24.
• AUM grew by 27% to INR 927 crores as on 31-Mar-25 compared to INR 730 crore in 31-Mar-24, led by branch expansion.
• 56% growth in Total Income in FY25: Total Income grew by 56% to INR 199.23 crore in FY25 compared to INR 127.96 crore in FY24, with growth in AUM. Net interest margin remained stable, and Pre-provision operating profits grew by 76% to INR 31.09 crore in FY25 from INR 17.66 crore in FY24, however, credit costs increased to INR 28.13 crore in FY25 from INR 7.10 crore in FY24, mirroring the industry trend, thereby limiting the growth in profit after taxes. The Company posted profit after taxes of INR 1.25 crore during FY25.
• 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. Gross NPA (on-book) increased to 6.61 % of AUM as of 31.03.2025 compared to 5.60% as of 31.12.2024. Net NPA (on-book) increased to 3.42% as of 31.03.2025 compared to 2.88% as of 31.12.2024.

However, the Company has effectively navigated the industry-wide stress in unsecured loans by strategically pivoting to secured lending and intensifying collection efforts. Asset slippage has been declining, and the Company has observed a turnaround in collection efficiency from November 2024 onwards. Collection efficiency in Current and up to 90 delinquency buckets recovered sharply in Feb’25, reaching collection efficiency levels observed at the start of the financial year, and is progressing well on the path to normalisation. The Company’s collection strategy of building out a separate collection function with over 100 team members focusing on collection, along with engagement of tele-calling agencies, digital interventions (SMS, IVR, bot) and intensified efforts on legal recourse for recovery of dues is showing positive results.

Further, the Company 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 261 crore as of Mar’25 and expected capital infusion of INR 84.72 crore on warrants conversion will increase the capital base to over INR 345 crore. Capital adequacy ratio remained healthy at 29.25% and debt-to-equity ratio at 2.44 times as on March 31, 2025. Moreover, increasing focus on secured lending (50% of disbursements in FY25 and 45% of AUM as of Mar’25) and improved geographic diversification with presence in 12 states spread across India is expected to yield stability in asset quality going forward.

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 are confident of emerging successfully from the current credit cycle.”