Small-business financier Vistaar Financial Services Pvt. Ltd has raised ₹1,360 crore from private equity firm Motilal Oswal Alternates, Singapore-headquartered impact investor ABC Impact, and others, the company said in a statement on 25 August.
The lender to micro and small enterprises said the latest round raised ₹870 crore in primary capital and ₹490 crore in secondary share sales.
“This investment allows us to deepen our grassroots presence, drive customer-centric innovation, product diversification, and strengthen brand positioning as we continue to create greater value for all our stakeholders,” said Avijit Saha, managing director and chief executive, Vistaar Financial Services.
Founded in 2010 by Brahmanand Hegde and Ramakrishna Nishtala, Vistaar provides capital access to small businesses, with a focus on micro, small, and medium enterprises (MSMEs).
It has assets worth over ₹5,000 crore under management (AUM) and operates across 12 states with more than 250 branches.
In 2023, PE firm Warburg Pincus acquired a majority stake in the company, strengthening its leadership bench, technology stack, analytics and cybersecurity capabilities, and compliance framework.
The deal also saw exits of early investors WestBridge Capital, Elevar Equity, Omidyar Network India, and Saama Capital.
Until then, the company had raised close to $117 million across multiple funding rounds and was valued at around $280 million, according to Tracxn.
As part of the transaction, Saha joined Vistaar and took over as CEO.
“Vistaar has established itself as a leading lender and partner for underserved MSMEs, an essential segment for India’s long-term economic progress. Under Avijit’s leadership, the company has accelerated growth with discipline and purpose,” said Narendra Ostawal, managing director and head of India private equity, Warburg Pincus.
Vistaar’s revenues rose 29.4% year-on-year to ₹684.7 crore in 2023-24, from ₹529.3 crore in 2022-23. Net profit grew 47.1% to ₹147.1 crore, compared with ₹100 crore a year ago. The company is yet to file its 2024-25 financials with the ministry of corporate affairs.
Avendus Capital acted as the exclusive financial advisor to Vistaar and its shareholders on the transaction.
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