Founded in 2010, Vistaar capitalizes on small business loans to shops, mills, hotels and manufacturers.
New York-based private equity firm Warburg Pincus LLC is in conversation to invest around $150 million in Indian small-business lender Vistaar Finance, two quotations familiar with the circumstance told Reuters, marking its latest wager in a booming lending market.
“Warburg’s conversations with Vistaar are for a 30 percent stake in the shadow lender“, the two sources said. “Deal talks are at an advanced stage and will value Vistaar at roughly $450 million“, said one of the sources.
Many companies like Vistaar in India function as non-banking economic services companies, lending minor amounts than traditional banks do and targeting mostly customers in towns and villages.
By March 2021, India’s NBFC sector had assets worth more than 54 trillion rupees. Its expansion in current years has captivated investors including Sequoia Capital and KKR & Co.
Vistaar is already supported by India’s Saama Capital and Westbridge Capital. It and Warburg decreased to comment on Reuters queries.
Also, India’s Kotak Mahindra Capital is instructing Vistaar on the talks for the confidential equity deal. The investment bank did not respond to a request for
comment
Over the past two decades, Warburg has subsidised $5 billion in India. Its current investments have comprised startups and shopper brands such as earphones maker boAt, beauty and makeup firm Good Glamm Group and hop and ride app Ola. Warburg’s NBFC bets in India contain the education section lender Avanse Financial Services and ON APP Fusion Microfinance.
