Private equity firm Warburg Pincus on Monday said it has acquired a 90% stake in India’s Vistaar Finance, which lends to small and medium businesses in the country.
The stake purchased by Warburg Pincus is for $250 million, through a combination of primary and secondary shares, according to Mint.
Post the transaction, Vistaar has a net worth of Rs 1,210 crore with a capital adequacy of 37%, the company said.
Former ICICI Bank executive Avijit Saha will be co-investing alongside Warburg Pincus and will be joining the company as chief executive officer.
“As Vistaar embarks on its next phase of growth, we will continue to build a deeper understanding of specific customer segments and fulfill their financial needs through customised products,” Saha said.
Founded by Brahmanand Hegde and Nishtala in 2010 and based in Bengaluru, Vistaar Finance claims to manage assets worth Rs2,600 crore ($315 million) and provide loans to micro, small and medium enterprises across 12 states with more than 200 branches and over 2,500 employees. It has around 35,000 active customers.
Warburg Pincus has more than $80 billion in assets under management. The firm has an active portfolio of more than 250 companies and has raised 21 private equity and 2 real estate funds, which have invested more than $109 billion in over 1,000 companies in more than 40 countries.
Last year, Warburg Pincus had said an affiliate of private equity funds managed by the New York-based firm will acquire a majority stake in Vistaar Finance. It was expected to give an exit to Vistaar Finance’s existing investors WestBridge Capital, Elevar Equity, Omidyar Network India, and Saama Capital, the company said.