Neel AcharyMumbai/ Kolkata, September 19, 2025: Dhruva Capital Services, an NBFC engaged in the business of investment and financing has announced strategic merger with Vector Finance Private Limited marking its foray into microfinance business. The company currently offers business loan, loan against property, loans for commercial vehicle and commercial equipment, invoice and lease rental discounting and construction finance.
The board of directors of Dhruva Capital Services on Friday approved the merger of Vector Finance with the company and its shareholders. The merger will be subject to necessary approvals/sanctions, from National Company Law Tribunal or such other competent authority and shareholders and creditors of both the companies, Dhruva Capital said in a notification to stock exchanges.
With Assets under Management (AUM) of Rs 390.23 crore as on March 31, 2025, Vector Finance has presence across six states primarily in the eastern and north eastern parts of the country. In FY25, the company disbursed a total amount of Rs 222.66 crore among 43,274 customers. Its total revenue from operation stood at Rs 27.16 crore as on March 31, 2025.
Mr Rahul Johri, Chairman, Vector Finance and a veteran banker with over 34 years of experience in leadership roles between the microfinance sector and banks such as Bandhan Bank, DBS Bank, Standard Chartered and Barclays said, the merger would offer perfect synergies and help create and develop a more diversified and resilient organisation.
“At Vector Finance it has been our constant endeavour to drive grassroot level penetration of finance in the country. This merger will offer the perfect synergies to help create and develop a more diversified and resilient organisation by leveraging upon Dhruva Capital’s understanding of financial sector and backed by our strong deep roots level connect in the MFI sector. The merger will also help reduce the overall cost of borrowing besides providing access to additional capital, which in turn would help the company further improve both its topline and also endeavour to reduce the interest rate to customers. This integration will enhance our ability to serve customers across segments, expand our product suite and unlock synergies in operations and capital efficiency,” Johri said.
Commenting on the merger, Mr Shreeram Bagla, Managing Director of Dhruva Capital Services, said, “The proposed merger of Vector Finance with Dhruva Capital marks a significant milestone in our growth journey. The microfinance company has a strong presence across six key states in the eastern and northeastern parts of the country, which are largely underpenetrated. By joining forces with the company, we wish to create a stronger and more resilient institution which combines our robust understanding of the financial sector with the deep and well entrenched reach of microfinance sector. Our vision is to drive inclusive growth by penetrating into under penetrated markets and empowering underserved communities. We believe that this strategic merger will not only strengthen our balance sheet and help us expand our reach and presence but will also make finance accessible and affordable to the mass market.”
According to SIDBI data, the portfolio outstanding of microfinance industry as on 31st March 2025 is ₹3,35,071 crore with 11.1 crore active loans. NBFC-MFIs contributes highest towards portfolio outstanding.
