Dhruva Capital Services Limited, a non-banking financial company (NBFC) engaged in investment and financing, has announced a strategic merger with Vector Finance Private Limited, marking its foray into the microfinance business. Currently, Dhruva offers business loans, loans against property, vehicle and equipment finance, invoice discounting, and construction finance.The board of Dhruva Capital has approved the merger, which will be subject to approvals from the National Company Law Tribunal and other competent authorities, along with shareholder and creditor consent.Vector Finance, with Assets under Management (AUM) of Rs 3.9 billion as of 31 March 2025, operates across six states, mainly in eastern and north-eastern India. In FY25, it disbursed Rs 2.2 billion to 43,274 customers, while its revenue from operations stood at Rs 271.6 million.Rahul Johri, Chairman of Vector Finance and a veteran banker with over three decades of experience at Bandhan Bank, DBS Bank, Standard Chartered, and Barclays, said the merger would create synergies, lower borrowing costs, provide access to additional capital, and expand the product suite. “This integration will strengthen our ability to serve customers, enhance operational efficiency, and deliver affordable finance,” he added.Shreeram Bagla, Managing Director of Dhruva Capital, described the deal as a milestone in the company’s growth journey. “By combining our expertise with Vector’s strong grassroots presence, we aim to drive inclusive growth, empower underserved communities, and expand into underpenetrated markets,” he said.According to SIDBI data, the Indian microfinance industry had an outstanding portfolio of Rs 33.5 trillion as of 31 March 2025, with 111 million active loans. NBFC-MFIs contributed the largest share.