Moneyboxx Finance Raises ₹20 Crore Via 10.20% Secured NCDs

Moneyboxx Finance Ltd. has successfully raised ₹20 crore by allotting Non-Convertible Debentures (NCDs) with a 10.20% annual interest rate. The 24-month NCDs are secured by a charge on identified receivables and fixed deposits.

Funding Details

Moneyboxx Finance Limited has completed the allotment of 20,000 Non-Convertible Debentures (NCDs) worth ₹20 crore. These NCDs were issued on a private placement basis to Manba Finance Limited and SK Finance Limited. The debentures carry an annual interest rate of 10.20%, mature in 24 months, and are secured by a first-ranking charge on identified receivables and fixed deposits.

Why This Matters

The funds raised will enhance Moneyboxx Finance's capital base, providing necessary resources to support its ongoing financial operations and future growth plans. The secured nature of this debt strengthens the company's overall capital structure.

Company Background

Moneyboxx Finance operates as a key player in India's MSME lending sector, focusing on financial inclusion for underserved populations in rural and semi-urban areas. The company has a history of issuing debt instruments to manage its capital. Previously, it raised funds via NCDs with coupon rates such as 13.7% and 16.50%. The company has also navigated recent financial challenges, including forfeiting ₹28.24 crore from warrant holders in March 2026 and an employee fraud incident involving approximately ₹1.13 crore. Earlier, in July 2024, SEBI issued a settlement order related to the company.

Funding Impact

The funding infusion is intended to provide Moneyboxx Finance with greater financial flexibility, enhance its capacity to disburse new loans to MSMEs, and support its growth trajectory.

Risks to Monitor

• Default Penalty: Failure to pay interest or principal for over three months incurs an additional 2% annual interest over the coupon rate.
• Asset Quality: The company's performance depends on the repayment capacity of its micro-entrepreneur borrowers, which can be impacted by economic downturns.
• Past Incidents: Recent events such as employee fraud and warrant defaults, while past, emphasize the need for continued operational and financial vigilance.

Peer Comparison

Moneyboxx Finance operates in the competitive microfinance and MSME lending sector. Its peers include other listed NBFCs and Small Finance Banks serving similar customer segments. Manba Finance Limited and SK Finance Limited, the allottees in this NCD issuance, are themselves listed entities. Manba Finance had a market cap of around ₹537 crore as of April 2026, while SK Finance has a proposed IPO. CreditAccess Grameen Limited, known for its focus on women borrowers in rural areas, is another key player in the microfinance space.

Key Metrics

Moneyboxx Finance's On-book Net NPA stood at 0.72% as of December 2025, a significant improvement from 3.42% in March 2025. The company's Average Borrowing IRR was 12.6% in Q3 FY26.