Warburg Pincus, the equity investor, on Monday, announced its acquisition of the controlling stake at the MSME-lender NBFC Vistaar Finance in partnership with Avijit Saha, previously associated with the ICICI Bank.
The New York-headquartered private equity player has acquired a 90 per cent stake in the Bengaluru-based NBFC for $250 million. According to the company’s statement, this deal is the company’s largest investment in the financial services sector in India.
Post the acquisition, Ramakrishna Nishtala, Co-founder and CEO of Vistaar Finance will pass on the baton to Avijit Saha who will take over the NBFC as the CEO. Saha, till most recently, was the Head of Rural and Inclusive Banking and President at ICICI Foundation.
Vistaar’s co-founders Nishtala and Brahmanand Hegde will continue to work as the company’s advisors and will not take an active part in the firm’s management.
Also read: TradeIndia.com launches a platform to provide unsecured loans to MSMEs
As of March 2023, 2500-people-strong Vistaar Finance had assets under management worth Rs 3,150 crore. Post the deal, Vistaar’s net worth is Rs 1,210 crore with a capital adequacy of 37 per cent.
Narendra Ostawal, Managing Director, Warburg Pincus, said in the company’s statement, “India is on the course of becoming a five trillion dollar economy over the next few years with the MSME sector playing a crucial role in achieving this goal. Warburg Pincus sees a significant opportunity in this space.”
Also read: Listing on BSE SME Exchange: How MSMEs can list on SME platform of BSE; check criteria, step-by-step process
Avijit Saha, CEO of Vistaar Finance, said, “As Vistaar embarks on its next phase of growth, we will continue to build a deeper understanding of specific customer segments and fulfil their financial needs through customised products.
Kotak Investment Banking acted as the exclusive financial advisor to this transaction.
Operational in 12 states, Vistaar Finance offers secured loans to small businesses such as general shops, power looms, small manufacturing units and home-based businesses.
Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
