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Kolkata: City-headquartered microfinance company VFS has sold off seven per cent stake to Capital First, another non-banking financial company which is based in Mumbai.

With this, VFS has raised an undisclosed amount of funds via private equity route. Utilising the funds, VFS wants to spread operations in 20 Indian states by 2020. The company at present operates in 12 states and has plans to expand to four more by the end of this fiscal year. In March, VFS had raised equity for the first time from Mumbai based Param Capital.

Kuldip Maity, MD and CEO of VFS said that they are looking for more equity investments and are in the process of tapping capital markets with a mid-sized IPO. “Our focus is still empowering rural poor women through structured lending and improving livelihood through financial inclusion.”