City-based microlender VFS Capital hopes toreach its pre-Covid numbers on assets under managementby March 2023 as disbursements pick up in the microfinance segment.

The company is also expanding its geographic presence by opening new branches in Rajasthan and has also revived its plans to raise capital.

“The assets under management were impacted during the Covid crisis and the focus then had turned primarily on collection. Now micro finance disbursements have returned to the pre-Covid levels. We are expecting to close March at around Rs 1,100 crore,” said Kuldip Maity, MD and CEO, VFS Capital on the sidelines of an AMFI-WB organized summit on microfinance on Friday.

In FY24, the AUM is expected to reach Rs 1800-1900 crore.

As per the company’s corporate presentation, the assets under management was Rs804.27 crore as of June 2022with 98.57 per cent of the portfolio in micro finance segment.

“This year we have plans to open 35 branches and of that we have already opened15 branches. We are also foraying into Rajasthan,” he said. The total number of branches is expected to reach 290 following the expansion.

On equity capital raising, Maity said that the process has started. “Next year we are looking to raise around Rs 100 crore,” he said. At present, the promoter holding in the company is 82 per cent, while the remaining 18 per cent is with institutional investors and HNIs.