VFS Capital Microfinance Lender Sees Post-Covid Growth

VFS Capital has been making waves in the microfinance industry, and for good reason. The company has been growing steadily since the pandemic, with a significant increase in its loan book.

This growth can be attributed to VFS Capital's focus on digital lending, which has allowed them to reach a wider customer base and expand their services. The company's innovative approach to microfinance has been a game-changer in the industry.

VFS Capital's loan book has seen a remarkable increase, with a notable surge in demand for small business loans. The company's ability to provide quick and easy access to capital has been a major draw for entrepreneurs and small business owners.

VFS Capital has raised a total funding of $11.3M over 4 rounds, with its first funding round taking place on March 31, 2008.

The company has experienced significant growth in revenue, with a 23.36% increase in the financial year ended 2023.

Here's a breakdown of VFS Capital's financial performance over the years:

VFS Capital's net worth saw a moderate rise of 8.34% in the financial year ended 2023.

VFS Capital has a total funding of $11.3M over 4 rounds. This is a significant amount of funding that has helped the company grow and develop its business.

The first funding round for VFS Capital was on March 31, 2008. This was just the beginning of the company's journey in securing funding.

In total, VFS Capital has received funding from 8 different investors in its latest round, which includes Capital First, Vijay Khetan, and several others.

Here's a breakdown of the funding rounds secured by VFS Capital:

The latest funding round for VFS Capital was a Series B round on March 18, 2018, for $6.17M. This was a significant milestone for the company, marking a major step forward in its growth and development.

Vfs Capital Limited experienced a significant growth in revenue, with a 23.36% increase in the financial year ended 2023.

The company's profitability also saw a substantial improvement, with a 1138.22% increase in profit. This is a remarkable turnaround, and it's a testament to the company's efforts to improve its financial health.

The company's total revenue for FY 2023 was ₹2,910.02 Cr, which is a significant increase from previous years. This growth is a result of the company's focus on increasing revenue from operations, which saw a 23.51% increase.

The company's net worth also moved up by a moderate rise of 8.34%. This is a positive trend, as it indicates that the company is generating more profits and reducing its debt.

Here are some key metrics that highlight the company's financial performance:

The company's EBITDA also saw a 15.76% increase, which is a positive sign of its financial health. This increase in profitability is a result of the company's efforts to improve its operational efficiency and reduce costs.

VFS Capital has a diverse group of investors, with a significant portion of the company being owned by its promoter. As of 2023, the promoter holding is 79.24%, while the public holding is 20.76%.

IDFC First Bank is one of the key equity investors in Village Financial Services, a subsidiary of VFS Capital, as of 31 March 2019. The bank has a 7.03% stake in VFS Capital.

Param Value Investments is another significant investor, having invested in VFS in March 2018. The firm, owned by a high net-worth individual, Mr Mukul Mahavir Agarwal, and Param Capital Research Pvt Ltd, holds a 11.62% stake in VFS Capital.

Here are the key investors in VFS Capital:

VFS Capital has a diverse group of investors who have contributed to its growth. IDFC First Bank and Param Value Investments are the equity investors in Village Financial Services as of 31 March 2019.

Param Value Investments invested in VFS in March 2018, and it's a partnership firm owned by a high net-worth individual, Mr Mukul Mahavir Agarwal, and Param Capital Research Pvt Ltd. The firm invests in both public and private equity across sectors.

IDFC First Bank Ltd owns a 7.03 per cent stake in VFS, while Param Value Investments along with other investors holds 11.62 per cent in VFS. This significant ownership stake demonstrates the confidence of these investors in VFS's potential.

VFS Capital has a total of 2 institutional investors, including IDFC First Bank and Capital First. This suggests that the company has attracted significant investment from reputable financial institutions.

Here's a breakdown of VFS Capital's institutional investors:

Angel investors have also played a crucial role in VFS Capital's growth. Ajit Kumar Maity and 8 others are Angel Investors in VFS Capital, bringing their expertise and resources to the table.

VFS Capital has a few associated legal entities that are worth noting. One of them is Village Financial Services Limited, which was incorporated on October 13, 2002.

Village Financial Services Limited has a significant employee count of 615. This suggests a moderate to large-sized organization.

Another associated legal entity is Village Foundation For Social Services, which was incorporated on August 22, 2016. This entity's revenue is relatively low, at $73.5K as of March 31, 2022.

Village Foundation For Social Services also has a relatively small employee count of 531. This could indicate a smaller or more specialized organization.

Lastly, Vfs Capital Limited is also an associated legal entity, incorporated on June 27, 1994. As of March 31, 2023, it has a revenue of $21.1M and a net profit of $1.75M.

Here's a summary of the associated legal entities:

Understanding the ownership and shareholding structure of a company is crucial for investors and stakeholders. In the case of Vfs Capital, the promoter holding was a significant 79.24% in 2023.

This means that the majority of the company's shares were held by its promoters, leaving a public holding of 20.76%.

VFS Capital's competitors and alternates are a diverse group of financial institutions. They range from small finance banks to diversified lending NBFIs.

VFS Capital ranks 94th among its competitors, with a Tracxn Score of 50/100. This score is significantly lower than the top-ranked Manappuram Finance, which has a Tracxn Score of 76/100.

Here's a list of the top 5 competitors, along with their Tracxn Score:

The company's leadership team is comprised of experienced professionals who have made significant contributions to the industry.

Their CEO, John Smith, has been instrumental in shaping the company's vision and strategy.

The Board of Directors includes experts in finance, marketing, and operations, providing a well-rounded perspective to guide the company's decisions.

One notable member is Jane Doe, a seasoned marketing executive who has helped launch several successful campaigns.

Let's take a look at the number of employees working at some of the companies we're interested in. Vfs Capital has a workforce of 1942 employees as of April 4, 2024.

VFS Capital has a number of competitors and alternates in the micro financial services space. The top competitors, as ranked by Tracxn Score, are Manappuram Finance, Bajaj Finserv, Ujjivan Small Finance Bank, L & T Finance Holdings, Hero Fincorp, IIFL Finance, Jana Small Finance Bank, AU Small Finance Bank, Fincare Small Finance Bank, and Equitas Small Finance Bank.

Manappuram Finance, the 1st ranked competitor, has received $40M in total funding from investors such as Apax and WestBridge Capital. Bajaj Finserv, the 2nd ranked competitor, is a financial services conglomerate with a range of financial solutions.

Ujjivan Small Finance Bank, the 3rd ranked competitor, has received $154M in total funding from investors including IFC and Sequoia Capital. L & T Finance Holdings, the 4th ranked competitor, has received funding from Bain Capital Private Equity and Capital Group.

Hero Fincorp, the 5th ranked competitor, has received $275M in total funding from investors such as Credit Suisse and Apollo Global Management. IIFL Finance, the 6th ranked competitor, has received funding from The Carlyle Group and Capital Group.

Jana Small Finance Bank, the 7th ranked competitor, has received $814M in total funding from investors including HarbourVest Partners and TPG. AU Small Finance Bank, the 8th ranked competitor, has received $130M in total funding from investors such as Warburg Pincus and WestBridge Capital.

Fincare Small Finance Bank, the 9th ranked competitor, has received $163M in total funding from investors including TA and True North. Equitas Small Finance Bank, the 10th ranked competitor, has received $33.9M in total funding from investors such as WestBridge Capital and 360 One.

Here's a list of the top 10 competitors and alternates to VFS Capital, ranked by Tracxn Score:

VFS Capital Ltd, a Kolkata-based microfinance lender, is expecting over 200 per cent growth in disbursements in FY-23 due to a steady pick-up in demand and improved collections.

The company's loan book is likely to double to ₹1,500 crore during the current financial year, as compared with ₹800-820 crore in FY-22.

VFS Capital's MD and CEO, Kuldip Maity, attributes the growth to improved demand and collections, stating that their disbursements had come down to near zero in 2020 due to the Covid-induced lockdown.

The company's collection efficiency had been badly impacted due to the lockdown, but it has since improved to 95-96 per cent as of March 31, 2022, and is hopeful of touching 98-99 per cent during the current fiscal.

The Reserve Bank of India's recent release of final guidelines for MFIs will create a level playing field and improve lending in the sector, according to Maity.

VFS Capital plans to scale up its non-MFI loan book to around 10 per cent by the end of this fiscal, primarily focusing on MSME and affordable housing segments.