Warburg Pincus acquires controlling stake in Vistaar Finance

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Warburg Pincus, a leading global private equity firm, said Monday that a subsidiary of private equity funds managed by Warburg Pincus LLC has acquired a controlling stake in Vistaar Finance (Vistaar), an NBFC that lends to MSMEs in India, in partnership with Avijit Saha.

This is one of the largest investments in the financial services sector by the company in India.

Kotak Investment Banking acted as the exclusive financial advisor for this transaction.

As part of the deal, Avijit Saha will join the company as CEO and will co-invest in the company in partnership with Warburg Pincus.

Avijit Saha has over 30 years of experience in retail and rural banking, digital banking and SME credit.

Saha most recently held the position of Head of Universal and Rural Banking and President of ICICI where he was responsible for financial solutions for clients in rural areas and was also responsible for building the CSR strategy for the bank.

Vistaar has emerged as one of India’s leading MSME and MSME lenders in India, with a clear vision to serve small businesses and to be an important catalyst in India’s drive towards ‘Make in India’.

Vistaar operates in 12 states, has around 40,000 loyal customers, with over 2,500 employees, and has assets under management of $3,150 crore as of March 2023.

After the transaction, Vistaar has a net worth of 1,210 sacral kronor with a capital adequacy ratio of 37 percent, making it one of the best non-profit financial companies in the country to take advantage of future growth opportunities.

Narendra Ostawal, Managing Director of Warburg Pincus, said: “Over the years, Vistaar Finance founders Brahmanand Hegde and Ramakrishna Nishtala have built a strong platform and Vistaar Finance has emerged as a leading SME lender to small enterprises in semi-urban and rural India that lack formal sources. to credit.

India is on its way to becoming a $5 trillion economy over the next few years with the MSME sector playing a major role in achieving this target. Warburg Pincus sees a huge opportunity in this space. Avijit has a proven and successful track record in the areas of rural banking, retail and SME credit. It also brings significant strengths in building and scaling different business models, and we’re excited to partner with Avijit on further building out the Vistaar platform. “

Avijit Saha, CEO of Vistaar Finance said, “I am excited to partner with Warburg Pincus given the company’s global experience in financial services and focus on building the long-term business in India.”