Vistaar Finance Raises INR 1,360 Cr Led by Motilal Oswal Alternates to Boost MSME Lending The deal also saw exits of early investors WestBridge Capital, Elevar Equity, Omidyar Network India, and Saama Capital.
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Bengaluru-based small-business lender Vistaar Financial Services Pvt Ltd has raised INR 1,360 crore from a group of investors led by Motilal Oswal Alternates, with participation from Asia-focused impact investor ABC Impact and others.
The funding includes INR 870 crore of primary capital that will support the company's next phase of growth.
The fresh investment underscores Vistaar's transformation journey since global private equity firm Warburg Pincus acquired a majority stake in the lender in 2023. Under the leadership of Managing Director and Chief Executive Officer Avijit Saha, the company has expanded its footprint across 12 states with more than 250 branches, strengthened its technology infrastructure, and reinforced its focus on compliance and cybersecurity.
Saha said, "This investment allows us to deepen our grassroot presence, drive customer-centric innovation, product diversification, and strengthen brand positioning as we continue to create greater value for all our stakeholders."
Founded in 2010 by entrepreneurs Brahmanand Hegde and Ramakrishna Nishtala, Vistaar provides secured loans to micro, small, and medium enterprises. Its borrowers include shopkeepers, small manufacturers, power loom operators, kirana stores, and home-based businesses that often lack access to organised sources of finance.
The firm now manages assets of over INR 5,000 crore with a capital adequacy ratio above 50 per cent and a stable A+ credit rating.
Warburg Pincus, which backed Vistaar in 2023, played a central role in the company's recent expansion and governance strengthening. "Vistaar has established itself as a leading lender and partner for underserved MSMEs, an essential segment for India's long-term economic progress. Under Avijit's leadership, the company has accelerated growth with discipline and purpose," said Narendra Ostawal, managing director and head of India private equity at Warburg Pincus.
The company has also delivered robust financial performance. Revenue rose 29.4 per cent year-on-year to INR 684.7 crore in 2023-24, up from INR 529.3 crore in the previous year. Net profit grew 47.1 per cent to INR 147.1 crore, compared with INR 100 crore a year ago.
The transaction also enabled early investors including WestBridge Capital, Elevar Equity, Omidyar Network India, and Saama Capital to exit. Avendus Capital acted as the exclusive financial advisor to Vistaar and its shareholders.
