Dhruva Capital Services Limited is a **Reserve Bank of India (RBI)** registered **Non-Banking Financial Company (NBFC)** (Registration No. **10.00098**) categorized as a **Non-Deposit taking** entity. Following a transformative change in control and management in **2024**, the company is pivoting from a traditional regional lender into a technology-first fintech enterprise focusing on **MSME** lending, micro-finance, and high-frequency digital credit. --- ### **Strategic Pivot & Ownership Transformation** The company has recently undergone a total structural overhaul, moving away from its legacy roots in Udaipur, Rajasthan, toward a national digital footprint. * **Change in Control (2024):** Following an open offer and the exit of the original promoters (Karnawat group), the company was acquired by new promoters: **Shreeram Bagla**, **Sridhar Bagla**, and **Rachna Suman Shaw**. The promoters acquired a **54.18%** stake at **Rs 55 per share**. * **Leadership Reconstitution:** The board was overhauled to support a fintech-led growth strategy. **Mr. Mohammad Mustafa** was appointed **Non-Executive Chairman** in **August 2024**, and **Mr. Prodyut Purkait** was appointed **CEO**. * **Asset Rationalization:** To streamline the balance sheet for core lending, the company has been liquidating non-core assets, including **undivided shares in non-irrigated agricultural land** in Rajsamand and Udaipur, and its former registered office premises. * **M&A Activity:** While a strategic merger with **Vector Finance Private Limited** (AUM of **Rs 390.23 crore**) was proposed in **September 2025**, the Board subsequently approved the **cancellation/withdrawal** of this scheme on **April 8, 2026**, signaling a shift toward organic digital growth. --- ### **The "NeoMoney" Digital Ecosystem** The cornerstone of the company’s new strategy is a mobile-first, high-frequency lending model designed to reduce manual intervention and maximize scalability. * **NeoMoney App:** Launched in **April 2026**, this platform serves as the primary interface for borrowers, utilizing **AI-driven infrastructure** for intelligent underwriting and automated decision-making. * **Technology Stack:** * **Onboarding:** 100% digital, paperless **KYC** with advanced risk assessment. * **Disbursement:** Integrated with **RazorpayX** and **IDFC First Bank** for real-time **IMPS-based** fund flows. * **Collections:** Automated monitoring and secure reconciliation via **Razorpay Payment Gateway**. * **Analytics:** Deployment of **Machine Learning (ML)** and **Robotic Process Automation (RPA)** for fraud detection and credit pricing. **Core Digital Product Specifications:** | Feature | Details | | :--- | :--- | | **Target Loan Size** | **INR 500 – INR 5,000** (Small-ticket liquidity) | | **Maximum Credit Limit** | Up to **INR 50,000** | | **Tenure Options** | **30 / 60 / 90 days** (with 90-day extension options) | | **Approval Model** | One-time approval for seamless repeat usage | | **Disbursement Speed** | **One-tap instant** (processed in seconds) | --- ### **Capital Structure & Fundraising** To fuel its transition into a high-volume fintech player, the company has aggressively expanded its capital base. | Instrument | Details | | :--- | :--- | | **Authorised Capital** | Increased from **₹4.50 Crore** to **₹15.00 Crore** (as of **Sep 2025**) | | **Preferential Equity Issue** | **37,55,000** shares issued at **Rs 55** (**Rs 20.65 Crore**) | | **Convertible Warrants** | **29,00,000** units at **Rs 55** (**Rs 15.95 Crore**) | | **Preference Shares** | **Rs 3.20 Crore** raised via **8,00,000** shares at **Rs 40** (including premium) | | **Listing** | **BSE** (Scrip: **531237**; ID: **DHRUVCA**) | --- ### **Financial Performance Summary** The company’s financials reflect a period of heavy investment and transition. | Metric | FY 2024-25 (Audited) | FY 2023-24 (Audited) | | :--- | :--- | :--- | | **Total Revenue from Operations** | **Rs 27.16 crore** | - | | **Net Profit / (Loss) After Tax** | **(Rs 1.11 crore)** | **Rs 4.26 crore** | | **Basic & Diluted EPS** | **(Rs 2.73)** | **Rs 10.48** | | **Paid-up Equity Share Capital** | **Rs 4.06 crore** | **Rs 4.06 crore** | | **Median Employee Remuneration** | **Rs 2,83,871** | **Rs 2,83,871** | *Note: The shift from profit to loss in FY25 is attributed to business intensification, management changes, and the costs associated with pivoting to a digital model.* --- ### **Credit Underwriting & Risk Management** Dhruva Capital employs a **360-degree underwriting view**, blending formal and informal data to serve the unrated **MSME** segment. * **Collateral Policy:** The company offers **unsecured loans** based on cash flow viability and risk-based pricing rather than mandating personal or third-party guarantees. * **Internal Controls:** Maintains a Board-approved loan disbursement and recovery policy with an internal audit system commensurate with its expanded digital operations. * **Banking Partners:** Key operational relationships maintained with **IDFC First Bank** and **ICICI Bank**. --- ### **Risk Factors & Market Outlook** Investors should monitor the following headwinds and industry-wide challenges: * **Macroeconomic Slowdown:** India’s **GVA growth** dropped to **5.6%** in Q2 FY2025, with manufacturing growth slowing to **2.2%**. This may impact the repayment capacity of MSME borrowers. * **Margin Compression:** Industry-wide **Return on Average Managed Assets (RoMA)** is expected to decline by **30-50 bps** in FY25-FY26 due to rising credit costs and competition from banks with lower-cost funds. * **Asset Quality:** Maintaining **Non-Performing Assets (NPAs)** within "bearable limits" is critical, especially in the unsecured small-ticket segment where borrower overleveraging is a rising concern. * **Regulatory Compliance:** While the **RBI** approved the change in management in **January 2024**, the company has noted past instances of **delayed compliances** with SEBI regulations, which the new management aims to rectify through a reconstituted Audit Committee. --- ### **Corporate Governance Framework** The company re-constituted its key committees in **March 2026** to ensure independent oversight: * **Audit Committee:** Chaired by **Altab Uddin Kazi** (Independent Director). * **Nomination & Remuneration Committee:** Chaired by **Altab Uddin Kazi**. * **Stakeholders Relationship Committee:** Chaired by **Altab Uddin Kazi**. * **Social Responsibility:** The company reported **zero complaints** under the POSH Act (Sexual Harassment Redressal) for the recent review period.