The acquisition will give an exit to Vistaar Finance’s existing investors WestBridge Capital, Elevar Equity, Omidyar Network India and Saama Capital
Global private equity firm Warburg Pincus, has ventured into a definitive agreement to acquire a majority stake in non-banking finance company (NBFC) Vistaar Finance, via an affiliate.
The acquisition will give an exit to Vistaar Finance’s existing investors WestBridge Capital, Elevar Equity, Omidyar Network India and Saama Capital. The transaction is subject to regulatory and certain other approvals. Kotak Investment Banking is the exclusive financial adviser for this Transaction.
Ramakrishna Nishtala, Managing Director and Chief Executive, Vistaar Finance said, “With the support of our existing partners, WestBridge, Elevar, Omidyar and Saama, we have come a long way over the last decade. We look forward to continue building on the legacy as we look ahead to the next phase of growth.”
Vistaar Finance, founded in 2010 by Brahmanand Hegde and Nishtala, provides capital access to small businesses, with a focus on micro, small, and medium enterprises (MSMEs). The firm claims to manage assets worth over Rs 2,600 crore. With over 205 branches, it is present in 12 states across the country. Over 35,000 active customers are served by the company.
Vistaar Finance raised $27.4 million in a round led by WestBridge Capital in 2014. The private equity investor increased its investment to $42 million, increasing its stake in the NBFC to 52.71 percent from 41.12 percent by purchasing shares from Vistaar’s founders, Sarva Capital, and others.
In April, Vistaar Finance bagged around Rs 150 crore from public sector lender Bank of Baroda. Also, in December, the company received Rs 225 crore ($30 million then) in external commercial borrowing (ECB) from FMO, Dutch entrepreneurial development bank.
Categories: Startups & SMBs