Credit and Finance for MSMEs: Global private equity fund Warburg Pincus is set to acquire a majority stake in Vistaar Finance, an NBFC that lends to Micro, Small and Medium Enterprises (MSMEs) in India.
Warburg is likely to buy the share from Vistaar’s existing shareholders such as WestBridge Capital, Elevar Equity, Omidyar Network India and Saama Capital. The company, however, did not disclose the financial details of the deal.
“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 fulfill that need gap and be a driver for broad-based growth in those regions and communities,” Narendra Ostawal, Managing Director, Warburg Pincus said in the company’s statement.
The transaction is subject to regulatory and certain other approvals. Kotak Investment Banking is the exclusive financial advisor to the transaction.
Founded by Brahmanand Hegde and Ramakrishna Nishtala in 2010, Vistaar Finance has assets under management of Rs 2,600 crore with a presence in 12 states. In April this year, the Bengaluru-based firm had raised Rs150 Crs from public sector bank Bank of Baroda.
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