Capital First, earlier known as Future Capital Holdings was founded in its current form in 2012 by Mr. V. Vaidyanathan by securing an equity backing of Rs. 8.10 bn from global Private Equity player Warburg Pincus, by way of buyout of an existing listed NBFC, and in the process the company got new shareholders, reconstituted a new board, started new business lines, and created a new brand and entity called Capital First. The founding theme of Capital First is that financing India’s 50 million MSMEs and its emerging middle class, with a differentiated model, based on new technologies provides a large and unique opportunity.
Within a short time, Capital First has built a large network and provides financing in 222 locations across the length and breadth of the country. The loan book of the company is of high quality as compared to the industry, with Gross and Net NPA 1.07% and 0.55% respectively. The company enjoys a high credit rating of AA+ which has been achieved by very select financial institutions in India. Capital First has emerged as a Specialized Player in financing MSMEs by offering different products for their various financing needs.
Capital First has transformed from a Wholesale Lending NBFC to a strong Retail Lending NBFC in the last 7 years. The company provides financing for various purposes like business expansion, loans for Plant and Machinery, Office furniture, display panels, office automation like PCs, laptops and printers. With this differentiated approach, Capital First has financed over 2.25 million customers including more than 1.5 million self-employed individuals and MSMEs and built loan assets of Rs. 160.41 billion (March 31st, 2016). Instead of charging a one-time fee for every loan disbursal, Capital First plans to amortise fees over the loan’s term period. In retail, it has diversified into several businesses to improve stability in performance. It also provides mortgage for SME businesses.
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Awards & Achievements