Private equity major Warburg Pincus will acquire a majority stake in Vistaar Finance, an NBFC lending to MSMEs in India, the PE fund said.
Existing shareholders would include WestBridge Capital, Elevar Equity, Omidyar Network India and Saama Capital. The deal size is not disclosed.
Kotak Investment Banking is the exclusive financial advisor to this Transaction.
Vistaar Finance was founded by Brahmanand Hegde & Ramakrishna Nishtala, veterans in the financial services domain. Vistaar Finance manages an AUM of over Rs2,600 crore.
Started operations in 2010, the Bengaluru-based Vistaar finance provides secured loans to micro, small and medium enterprises across 12 states with 205 branches and over 2,100 employees.
The company provides 100% secured lending across ticket size categories through business and housing loans and targets small businesses such as shops, small manufacturing units, power looms, kirana /general shops, and home-based industries, which do not have access to organised funding for growth.
“We look forward to working with Warburg Pincus to help drive Vistaar’s vision of being a catalyst, enabling the underserved segment to achieve economic independence and social well-being,” said Brahmanand Hegde, Executive Vice Chairman, Vistaar Finance
“We believe micro-enterprises in semi-urban and rural India are underserved by formal sources of credit and we believe Vistaar has the potential to fulfil that need gap and be a driver for broad-based growth on those regions and communities,” said Narendra Ostawal, Managing Director, Warburg Pincus.
Warburg Pincus LLC has more than $85 billion in assets under management.
