U.S.-based private equity fund Warburg Pincus has agreed to acquire a majority stake in non-banking finance company Vistaar Finance.
Exiting shareholders include WestBridge Capital, Elevar Equity, Omidyar Network India and Saama Capital, Warburg Pincus said in a release. The companies did not disclose the financial details of the deal.
Vistaar Finance is engaged in lending to MSMEs in India. The transaction is subject to regulatory and certain other approvals.
Vistaar Finance has assets under management of Rs 2,600 crore with presence in 12 states and as many as 205 branches.
The investment by Warburg Pincus is a testimony to the strong foundation the company has built, Brahmanand Hegde, executive vice chairman at Vistaar Finance, said in a statement. Warburg Pincus onboarding will enable the underserved segment to achieve economic independence and social well-being, he said.
"We look forward to continuing building on the legacy as we look ahead to the next phase of growth," Ramakrishna Nishtala, managing director and chief executive officer at Vistaar Finance, said.
Kotak Investment Banking is the exclusive financial adviser to the transaction.
"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 in those regions and communities," Narendra Ostawal, managing director, Warburg Pincus, said.
"Warburg Pincus has a deep history in partnering with exceptional teams, particularly within financial services and looks forward to a similarly exciting future at Vistaar," he said.
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