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An affiliate of private equity funds managed by Warburg Pincus LLC has entered into definitive agreements to acquire a majority stake in Bengaluru-based Vistaar Finance, an NBFC lending to MSMEs.
Existing shareholders would include WestBridge Capital (WestBridge), Elevar Equity (Elevar), Omidyar Network India (Omidyar) and Saama Capital (Saama), per a Vistaar Finance statement.
Transaction details relating to how much stake the Warburg Pincus affiliate would pick up in Vistaar Finance and the acquisition value have not been disclosed. The transaction is subject to regulatory and other approvals.
New York-headquartered Warburg Pincus, founded in 1966, has raised 21 private equity and two real estate funds, investing more than $106 billion in over 1,000 companies in 40 countries.
Kotak Investment Banking is the exclusive financial advisor to this transaction.
Vistaar Finance was founded by Brahmanand Hegde and Ramakrishna Nishtala, veterans in the financial services domain, to serve small businesses. The NBFC manages an AUM of over ₹2,600 crore with presence across 12 states and 205 branches, according to the statement.
Brahmanand Hegde, Executive Vice Chairman, Vistaar Finance, said, “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.”
Ramakrishna Nishtala, MD & CEO, Vistaar Finance, noted that with the support of existing partners, WestBridge, Elevar, Omidyar and Saama, Vistaar Finance has come a long way over the last decade and established its position as a specialist MSME lender.
“We look forward to continue building on the legacy as we look ahead to the next phase of growth,” he said.
Narendra Ostawal, Managing Director, Warburg Pincus, said, “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.”
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