Warburg Pincus is acquiring a controlling stake in Vistaar Finance for $300 million, a person close to the matter told VCCircle.
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.
“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,” said Ramakrishna Nishtala, managing director and chief executive, Vistaar Finance.
Founded by Brahmanand Hegde and Nishtala in 2010, Vistaar Finance provides capital access to small businesses, with a focus on micro, small and medium enterprises (MSMEs). The company claims to be managing assets of over Rs 2,600 crore. With more than 205 branches, it has a presence across 12 states in the country. The firm serves to over 35,000 active customers.
Vistaar Finance received its first external funding of $3.3 million (Rs 15 crore then), in 2010 from Elevar Equity Advisors and SVB India Capital Partners. In 2012, the firm raised $7.2 million in Series B funding from Lok Capital—now known as Sarva Capital—and Omidyar Network, besides Elevar and SVB India.
In 2014, Vistaar Finance raised $27.4 million in a round led by firm WestBridge Capital. The private equity investor doubled down on its investment by putting in another $42 million in the company, raising its stake in the NBFC to 52.71% from 41.12% by purchasing shares from Vistaar’s founders, Sarva Capital, and others.
In April, Vistaar Finance raised 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.
In the past, the company has also raised debt from Franklin Templeton Asset Management, Reliance Nippon Life Asset Management, and UTI Asset Management Company.
