Co-Founder
FY24 marks our half-decade journey with you. The short yet momentous journey has been shaped by your tremendous support and trust in us. This has instilled in us the responsibility to create and deliver value for you, a commitment we upheld since our inception with a humble yet virtuous approach. We see our purposeful engagement with the customers as responsibility to those in need and a contribution to the nation’s development on a larger scale.
The contemporary digital landscape has further enhanced our credibility, enabling us to serve you better. Leveraging these advancements, we have made significant progress, impacting 1.5 lakh customers across the country. As we move forward, our vision to be “The Lender of Choice” for deserving micro-enterprises in India continues to guide us beyond the conventional boundaries of possibility while we embrace the endless opportunities of digital environment. Thus, our ethos of “Guided by Vision, Driven by Digital” mirrors our approach and exemplifies our agenda.
The macro-economic momentum of the country has been tremendous since quite some time now. Despite the slowdown in the global economy which has led to implement restrictive monetary policy by most of the central banks in the world, Indian economy has shown remarkable resilience and put up a gracious show in the charts. Continuing with the momentum, India has solidified its position as the fifth-largest economy in the world. According to NSO data, GDP growth is estimated to reach 8.2% in FY24, up from 7.0% the previous year, driven by strong domestic demand, increased investment, moderate inflation, and a stable interest rate environment. Despite concerns over volatile food prices, the Reserve Bank of India maintained the repo rate at 6.50%. With an optimistic forecast of 7.2% GDP growth for FY25, strong public investment, private capex, and rising private consumption are set to drive India’s economic ascent. With inflation being at the moderate levels and prudent Government strategies in place, the momentum is much likely to impact us positively in the longer run and sustain our growth.
Assessing our operating environment which majorly includes the NBFC and MSME sector of the country, both are driving tremendous potential in the current times while driving the country’s socio-economic development. The NBFCs are widely accepted financial solution providers for MSMEs and underserved population of the country. Whereas the MSME is contributing to almost 30% of India’s GDP and responsible for 45.73% of domestic exports, the NBFC sector is backing up this sector with its inclusive lending strategies, versatile portfolio, diversified services, and last-mile service delivery. This makes the NBFC sector a major contributor to nation building and developing an empowered society to ensure overall prosperity.
Co-Founder
We are driven by the idea of inclusive growth where our lending is directed towards impacting the borrowers positively. Our efforts are directed towards creating value for the borrowers who are majorly underserved by the conventional financial institutions. We refer them as the missing middle and our efforts are directed towards mitigating the credit gap while empowering them leading their lives with dignity. Our core competency includes a robust underwriting process which helps us to averse registering NPAs, and a prudent digital infrastructure that adds in enhancing the overall operational efficiency. These combinedly have enabled us to maintain a record low NPA of 1.54% against NBFC sector’s 4.0% in FY24 and exemplifies our efficient and robust operations.
Looking at our customer portfolio, we constitute 35% new-to-credit customer while maintaining a healthy relation with the existing base. So far, we have served 1.5 lakh customers across 8 states with 100 physical branches. Our primary focus is the micro-enterprises in important and essential segments: livestock (dairy farming), kirana (grocery stores), retail traders, and micro-manufacturers. Our unsecured business loans, with ticket size of up to ₹ 3 lakh with up to 36 months loan tenure, serves our customers in Tier-3 cities and below. On the other hand, our secured loans are offered up to ₹ 10 lakh ticket size with tenure of up to 84 months and are primarily borrowed against residential mortgage.
Further, to cater the customers’ credit needs, we have forged partnerships with 32 esteemed lending entities in the industry. Collaborating with them, we have disbursed ₹ 1,207 crore during FY24. This inclusion to the customers has resulted in 2X growth in their disposable income. Notably, our branch productivity has witnessed a significant increase, with the AUM per branch (over 24 months vintage) growing from ₹ 9.2 crore in March 2023 to ₹ 13.7 crore in March 2024. Currently, we have ₹ 730 crore of assets under management which is projected to grow by 3.5X to ₹ 2,575 crore. This exemplifies our strategic foresight balancing with the opportunities that are there in the market.
The most remarkable transformation, in the finance industry happens to be the large-scale digitalisation to boost efficiency in service delivery. The same transpired in our operations as well, with the multi-scale technology integration at various stages. Integration of MIS and Sikka app is one of them. MIS integration has enhanced our loan management system, HR management whereas the Sikka app has enabled us to efficient lead generation. Further, the app catalyses the progress of small ventures, contributing to economic development and prosperity in rural communities. In addition to our technological integration, we have employed a ‘phygital’ approach where we combine on-ground presence with advanced technology for streamlined processes and improved decision-making. From onboarding to reporting, our digital processes have significantly reduced paper usage and carbon footprint as well.
Our innate lending philosophy is based on creating socio-economic impact on the society. This includes empowering the woman borrowers and provide them with the opportunity to earn their livelihood. The increasing presence of women as entrepreneurs has led to significant business and economic growth in the country. Women-led business enterprises are playing a prominent role in society by generating employment, bringing in demographic shifts, and inspiring the future generation to participate in social development and nation building. Recognising the immense potential of women entrepreneurship in India, we have curated our services to empower the last-mile women borrowers. During the reporting period, our 59% unique borrowers being women. The stats are signifying our focus delved towards women empowerment.
Our beyond business initiatives are directed towards adding value to the borrowers’ lives. This encompasses arranging veterinary consultations with our full-time vets for them to manage a healthy cattle life and milk yield improvement. Further, we have launched agroforestry drive, recognising its potential to enhance our borrower’s income and positively impact the environment. Our interventions include planting 12,000+ fruit-bearing trees, free veterinary consultations to more than 36,000 livestock owners, and diagnosed over 3,40,000 cattle. This initiative allows us to deliver value beyond numbers, contributing meaningfully to the society.
Our performance in FY24 underscores our commitment to financial inclusion and prudent financial capital management. By targeting the underserved ‘missing middle’ – micro-entrepreneurs and agri-preneurs in rural regions – we have tailored financing solutions to support critical sectors like agriculture. This focus has driven a 112% year-on-year growth in assets under management (AUM) to ₹ 730 crore, strengthening our asset progress and profitability.
We have also achieved significant profitability improvements through enhanced productivity, operational efficiencies, and reduced borrowing costs. Our income for FY24 reached ₹ 128 crore, with a profit after tax of ₹ 9.14 crore and an ROE of 8.1%. Strengthening our capital base by raising ₹ 85.1 crore in equity has nearly doubled our existing capital, supporting further expansion. Additionally, diversifying our funding sources, including listing Non-Convertible Debentures on the BSE, has helped reduce borrowing costs and position us for continued growth.
Looking ahead, our strategy is focussed on fortifying our presence in the ₹ 1-10 lakh loan segment while maintaining a low NPA to improve asset quality. We aim to grow our AUM by 3.5X and branch concentration by 2.7X by 2026, ensuring a robust expansion. Maintaining an optimal capital structure with balanced debt-equity mix and strong unit economics will be crucial for this growth. We are committed to improving the profitability by increasing operating leverage and lowering borrowing cost, which will further enhance our ROE. To support these ambitions, we plan to raise ₹ 150 crore in equity in FY25, bolstering our operations and positioning us for continued success.
We are committed to building upon our moral foundations and continuing to set new benchmarks in the industry. Our journey reflects our dedication to making a positive impact on the society and its people. To this end, we have curated our lending strategies to add value and empower borrowers to uplift their quality of life.
We extend our deepest gratitude to all the stakeholders for their support throughout our endeavour. The success we cherish today would not have been possible without the tireless effort and dedication of our employees. Additionally, the board of directors has been a guiding beacon, central to our growth mindset.
Together, we have achieved so much, and we will continue this momentum into the future. Thank you for your support. Let’s achieve even greater things together.
With warm regards,
Copyright ©2024 Moneyboxx. All rights reserved.
Designed & Developed by RDX Digital
Company Overview 
