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{{short description|Indian non-banking financial company}}
{{Use dmy dates|date=September 2019}}
{{Use Indian English|date=September 2019}}

{{Infobox company
| name = VFS Capital Limited
| logo = Logo- VFS Capital.svg
| logo_caption =
| type = [[Financial services|Financial Services]]
| traded_as =
| founders = Mr Kuldip Maity
| industry = [[Financial service]]s
| founded = {{start date and age|df=y|1994|06|28}}
| key_people = {{ubl|Mr Ajit Kumar Maity {{small|(Chairman)}}|Mr Kuldip Maity {{small|(MD & CEO)}}|Dr Sankar Datta {{small|(Independent Director)}}|Ms Jayshree Vyas {{small|(Chartered Accountant)}}|Dr T.K. Mukhopadhyay {{small|(Independent Director)}}|Mr Pradipta Jena {{small|(Independent Director)}}}}
| operating_income = {{increase}} {{INRConvert|212.58|c}} (2020)
| net_income = {{increase}} {{INRConvert|35.06|c}} (2020)
| assets = {{increase}} {{INRConvert|1007.57|c}} (2020)
| equity = 161.05 Crore
| owner =
| num_locations = 13 state, 78 districts, 20,900 Villages
| num_locations_year = 2020
| num_employees = 1473 (2020)
| location = Village Financial Services, Eco space, Business Park, Tower-4 B, Room no. 403, 4th Floor, New Town, Rajarhat, [[Kolkata]] - 700160, [[West Bengal]], [[India]].
| homepage = {{url|https://www.vfscapital.in/}}
}}

'''VFS Capital Limited''' formerly known as '''Village Financial Services Ltd (VFS)''', is headquartered in Kolkata, was incorporated on 28 June 1994,<ref>{{Cite web|url=https://connect2india.com/VILLAGE-FINANCIAL-SERVICES-PRIVATE-LIMITED/2504210|title=VILLAGE FINANCIAL SERVICES PRIVATE LIMITED - Company, registration details, products, directors, charges and contact details {{!}} Connect2India|website=connect2india.com|access-date=2019-09-04}}</ref> as a private limited company before it got its present name.<ref>{{Cite web |last=Indiablooms |title=VFS Capital launches business operations in Rajasthan {{!}} Indiablooms - First Portal on Digital News Management |url=https://www.indiablooms.com/finance-details/17754/vfs-capital-launches-business-operations-in-rajasthan.html |access-date=2023-06-13 |website=Indiablooms.com |language=en}}</ref><ref>{{Cite news |date=2023-03-04 |title=Leading MFI VFS Capital plans to raise Rs 1,500 crore in FY'24 to support growth plans |work=The Times of India |url=https://timesofindia.indiatimes.com/leading-mfi-vfs-capital-plans-to-raise-rs-1500-crore-in-fy24-to-support-growth-plans/articleshow/98408237.cms?from=mdr |access-date=2023-06-13 |issn=0971-8257}}</ref> As of December, 2025 they have defaulted on all their financial obligations and staring at a bankruptcy.<ref>https://economictimes.indiatimes.com/industry/banking/finance/banking/capital-crunch-poor-asset-quality-topple-small-microfinance-institutions/articleshow/125420131.cms?from=mdr</ref>

The name Village Financial Services Private Limited (VFSPL) was registered by the Registrar of Companies on 23 January 2006. Subsequently, the Reserve Bank of India granted it a certificate of registration dated 1 December 2006.<ref>{{Cite journal|date=15 January 2011|title=International Journal of Microfinance|url=http://www.pondiuni.edu.in/sites/default/files/microfinance14062011.pdf|journal=Pondiuni.edu.in}}</ref> In 2013, VFSPL became the first [[microfinance institution]] (MFI) in eastern India to get the status of an NBFC-MFI or [[Non-banking financial company|Non-Banking Financial Company]]-MFI from the [[Reserve Bank of India|RBI]].<ref>{{Cite web|url=https://connect2india.com/VILLAGE-FINANCIAL-SERVICES-PRIVATE-LIMITED/2504210|title=About VILLAGE FINANCIAL SERVICES PRIVATE LIMITED|date=28 June 1994|website=Connect2India}}</ref>

On 7 November 2017, the company was converted into a [[public company]], after which the RBI granted it a fresh certificate of registration on 4 January 2018.<ref>{{Cite web|url=https://www.zaubacorp.com/company/VILLAGE-FINANCIAL-SERVICES-LIMITED/U51109WB1994PLC063746|title=VILLAGE FINANCIAL SERVICES LIMITED|date=18 November 2019|website=Zaubacorp}}</ref> VFS is also the first ISO-certified [[microfinance]] company in India.{{Citation needed|date=February 2020}} The microfinance operations under VFS have grown phenomenally. It has touched the lives of thousands of poor families by providing them credit for income-generating activities and helping them become economically self-sufficient, besides empowering women (who are the borrowers) and so letting them live with dignity.

== History ==
In 1978, a group of young people got together to help [[Floods in India|flood victims of West Bengal]]. In 1982, that developed to Village Welfare Society (VWS) and was registered as a not-for-profit organization.<ref>Margaret McLaren, '[https://huichawaii.org/wp-content/uploads/2018/01/McLaren-Margaret1-2018-AHSE-HUIC.pdf Exploring Empowerment: Microfinance and Women's Agency]', 2018 Hawaii University International Conferences: Arts, Humanities, Social Sciences, and Education (3-6 January 2018).</ref> VWS began microfinance activities in 1996 which led to the setting up of Village Micro Credit Services in 2004, a Section 25 not-for-profit company to undertake microfinance activities. The firm was renamed to Village Financial Services Limited, regulated by the RBI. It was reclassified by the RBI as an ‘[[NBFC & MFI in India|NBFC-MFI]]’ on 27 September 2013.<ref name=":0">Shariq Khan, '[https://economictimes.indiatimes.com/small-biz/entrepreneurship/village-financial-services-market-based-impact-lending-for-the-underserved-unbanked/articleshow/69002868.cms?from=mdr Village Financial Services: Market-based impact lending for the underserved, unbanked]', ''The Economic Times'' (24 April 2019).</ref>

The company was incorporated on 28 June 1994, in Kolkata, West Bengal, India, as a private limited company under the Companies Act, 1956, under a different name.{{fact|date=April 2021}}

* In 2006-07, it acquired a [[Non-bank financial institution|non-banking financial company (NBFC)]] and became Village Financial Services Pvt Ltd.
* In 2013-14, the Reserve Bank of India reclassified VFSPL as an [[NBFC & MFI in India|NBFC-MFI.]]<ref name=":0" />
* In 2017-18, Village Financial Services Pvt Ltd became Village Financial Services Ltd and got its first [[private equity]] (PE) funding.
* In 2018-19, VFS saw its [[assets under management]] cross Rs 1,000 [[crore]].

The company has been included in academic studies of micro finance.<ref>Erica Field and Rohini Pande, "Repayment Frequency and Default in Microfinance:Evidence from India," ''Journal of the European Economic Association'', 6.2-3 (2008), 501-9.</ref><ref>Erica Field, Rohini Pande, John Papp and Y. Jeannette Park, "Repayment Flexbility Can Reduce Financial Stress: A Randomized Control Trial with Microfinance Clients in India", ''PLoS ONE'', 7.9 (2012), e45679 [https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0045679].</ref><ref>Erica Field, Rohini Pande, John Papp, and Natalia Rigol, "Does the Classic Microfinance Model Discourage Entrepreneurship Among the Poor? Experimental Evidence from India", ''American Economic Review'', 103.6 (2013), 2196–226.</ref>

== Board of directors ==

* '''Mr Ajit Kumar Maity''' is the chairman of Village Financial Services Ltd. He has worked in [[microfinance]] since 1995 after having started an NGO in 1978. He is the pioneer of microfinance in eastern India. He is also the founder-member of Sa-Dhan.<ref>{{Cite news|url=https://news.webindia123.com/news/articles/India/20180919/3437905.html|title=Sa-Dhan organises two-day conference on microfinance|work=Web India 123}}</ref>
* '''Mr Kuldip Maity''' is the MD and CEO of Village Financial Services. He is associated with Sa-Dhan, AMFI West Bengal and Micro Finance Institutions Network (MFIN).<ref>{{Cite news|url=https://www.indiatoday.in/pti-feed/story/demonetisation-halts-disbursements-by-mfis-648745-2016-11-18|title=Demonetisation halts disbursements by MFIs|date=18 November 2016|work=India Today}}</ref> He has been a dedicated social worker for over two decades. He has received numerous awards for his work.
* '''Dr Sankar Datta''', a doctorate in economics, is an independent director of VFS. He has been working for more than three decades with the poor to improve their livelihoods by getting linked with various value chains and accessing microfinance.
* '''Ms Jayshree Vyas''', a chartered accountant, is an independent director of VFS. She is the Managing Director of Shri Mahila Sewa Sahakari Bank Ltd and Promoter Director in Sewa Grih Rin Ltd, and a director in Equitas Holding Ltd, among others.<ref>{{Cite news|url=https://indianexpress.com/article/india/india-news-india/demonetisation-halts-disbursements-by-mfis-4383162/|title=Demonetisation halts disbursements by MFIs|date=19 November 2016|work=The Indian Express}}</ref>
* '''Dr T.K. Mukhopadhyay''' is an independent director of VFS. He was earlier country head of [[IDBI Bank]] and has been on the board of North Eastern Development Financial Corporation (NEDFi).
* '''Mr Pradipta Jena''', an independent director of VFS, is a former Regional Director of the [[Reserve Bank of India]]. He has handled general banking and foreign exchange, among others, and has a special interest in rural development and microcredit.

== Investors ==

* IDFC First Bank and Param Value Investments<ref>{{Cite news|url=https://www.business-standard.com/article/pti-stories/vfs-raises-rs-25-cr-private-equity-from-param-capital-118032900606_1.html|title=VFS raises Rs 25 cr private equity from Param Capital|date=29 March 2018|work=Business Standard}}</ref> are the equity investors in Village Financial Services as on 31 March 2019.
* Param Value Investments invested in VFS in March 2018.<ref name="Business Line">{{Cite news|url=https://www.thehindubusinessline.com/money-and-banking/vfs-confident-of-growing-loan-book-to-1600-cr-by-fy20/article26749667.ece|title=VFS ‘confident’ of growing loan book to ₹1,600 cr by FY20|date=5 April 2019|work=Business Line}}</ref> Param Value Investments is a partnership firm owned by a high net-worth individual, Mr Mukul Mahavir Agarwal, and Param Capital Research Pvt Ltd.<ref>{{Cite news|url=https://www.businesstoday.in/pti-feed/vfs-raises-rs-25-cr-private-equity-from-param-capital/story/273640.html|title=VFS raises Rs 25 cr private equity from Param Capital|date=29 March 2018|work=Business Today}}</ref> The firm invests both in public and private equity across sectors.<ref>{{Cite news|url=https://www.thehindubusinessline.com/money-and-banking/village-financial-services-to-expand-reach/article9622890.ece|title=Village Financial Services to expand reach|date=7 April 2017|work=The Hindu Business Line}}</ref>
* Capital First Limited invested in VFS in July 2018. In December 2018, [[IDFC First Bank|IDFC Bank Ltd]] merged with Capital First Ltd and renamed itself as [[IDFC First Bank|IDFC First Bank Ltd]].<ref>{{Cite news|url=https://www.business-standard.com/article/pti-stories/vfs-in-talks-with-merchant-bankers-for-ipo-118100300598_1.html|title=VFS in talks with merchant bankers for IPO|date=3 October 2018|work=Business Standard}}</ref>
*IDFC First Bank Ltd owns a 7.03 per cent stake in VFS,<ref>{{Cite news|url=https://www.vccircle.com/village-financial-seeks-private-growth-capital-after-deferring-ipo|title=Village Financial seeks private growth capital after deferring IPO|date=14 January 2020|work=VC Circle}}</ref> while Param Value Investments along with other investors holds 11.62 per cent in VFS.<ref name="Business Line"/>

== Awards and recognition ==
Awards received by the organisation are listed on its [https://village.net.in/highlights-and-achievements/ webpage].

== References ==

{{reflist}}

==External links==
* https://www.vfscapital.in/

[[Category:Companies based in Kolkata]]
[[Category:Microfinance companies of India]]
[[Category:Community development organizations]]
[[Category:Social enterprises]]
[[Category:Indian companies established in 1978]]

VFS Capital - Revision history

Md Omar Faruq: starting a post.