New Delhi, Aug. 25 -- Vistaar Financial Services Pvt Ltd, a non-bank lender majority owned by private equity firm Warburg Pincus, has concluded a Rs 1,360 crore ($156 million) round of funding that includes a primary capital infusion and a secondary sale of shares.
The round was led by Motilal Oswal Alternates, with Singapore-headquartered impact investor ABC Impact also pitching in, Vistaar said in a statement.
The round included a primary infusion of Rs 870 crore, Vistaar said, implying that the secondary transactions were worth Rs 490 crore. It did not disclose the names of the sellers. VCCircle could not immediately ascertain this information but has gathered that Warburg's stake after the latest set of transactions has come down to 81.82%.
Vistaar didn't disclose the names of the other investors in its statement. However, VCCircle had first reported in March that the company was raising around Rs 870 crore in primary capital from MO Alts, True North, Faering Capital, and ABC Impact.
The fresh round comes a couple of years after Warburg completed the acquisition of a 90% stake in the non-bank lender. The private equity firm had acquired the shareholding for around $250 million, or Rs 2,050 crore at the time. The transaction led to the exit of Vistaar's investors at the time - WestBridge Capital, Omidyar Network, Saama Capital, and Elevar Equity. Warburg subsequently injected Rs 300 crore into the lender as fresh capital and bought out some minority shareholders to increase its stake to over 98% as on March 31, 2024.
The lender also said it plans to utilise the funding to support the next phase of growth. "This investment allows us to deepen our grassroot 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 CEO.
The Bengaluru-based non-bank lender started operations in 2010 and provides secured loans to micro, small and medium enterprises across 12 states with over 250 branches. The company targets small businesses such as shops, small manufacturing units, power looms, kirana, general shops, and home-based industries, which do not have access to organised funding for growth.
The company's net profit rose 50% year-on-year to Rs 221 crore in the financial year ended March 2025, aided by growth in the loan book. The assets under management rose 22% year-on-year to Rs 4,930 crore as on March 31.
Published by HT Digital Content Services with permission from VC Circle.