Private equity giant Warburg Pincus made a significant move in the financial sector by acquiring a 90% stake in non-bank lender Vistaar Finance for a sum of $250 million. The acquisition involved a combination of primary and secondary investments, according to an announcement made by the company Pincus on Monday. Avijit Saha, a seasoned banker, has partnered with the company Pincus and joined Vistaar Finance as its CEO.
This investment represents one of the largest financial sector bets made by Warburg Pincus in India. Vistaar Finance, established 13 years ago, currently operates in 12 states across the country. It boasts a customer base of 40,000 and employs over 2,500 individuals. The 90% stake acquired by Warburg Pincus was purchased from existing investors and the company’s founders.
As of the end of March, Vistaar Finance held assets under management (AUM) amounting to more than Rs 3,150 crore. Following the transaction, the company’s net worth has risen to Rs 1,210 crore. It also maintains an overall capital buffer of 37%. Narendra Ostawal, Managing Director of Warburg Pincus, praised Vistaar Finance for its position as a leading lender to small businesses in semi-urban and rural areas where formal credit sources are limited.
Avijit Saha, the newly appointed CEO of Vistaar Finance, brings over three decades of experience in the industry. He previously served as the head of rural and inclusive banking at ICICI Bank. Saha acknowledged the vital role played by micro, small, and medium enterprises (MSMEs) in driving the socio-economic development of the country. He expressed his commitment to steering Vistaar Finance towards its next phase of growth.
The partnership between Warburg Pincus and Vistaar Finance underscores the investor’s confidence in the lender’s potential and its ability to cater to underserved segments of the market. Vistaar Finance’s focus on providing financial solutions to small businesses operating in semi-urban and rural areas aligns with the larger objective of fostering inclusive growth and supporting economic development across India.
Warburg Pincus has a long-standing reputation as a leading global private equity firm, with extensive experience in investing in various sectors. By making this strategic investment in Vistaar Finance, Warburg Pincus aims to leverage its expertise and resources to fuel the lender’s expansion and enhance its capabilities.
The acquisition of a majority stake by Warburg Pincus is expected to provide Vistaar Finance with a strong financial backing, enabling it to accelerate its growth trajectory and further strengthen its market position. The infusion of capital and expertise from Warburg Pincus will likely facilitate the development of innovative financial products and services, ultimately benefiting the small businesses and individuals that Vistaar Finance serves.
The acquisition of the 90% stake in Vistaar Finance was a combination of primary and secondary investments. The stake was purchased from existing investors as well as the company’s founders. This transaction reflects Warburg Pincus’ confidence in the company’s performance and growth prospects.
One of the key figures in this strategic partnership is Avijit Saha, a highly experienced banker who has joined Vistaar Finance as its CEO. Saha, who brings over three decades of industry expertise to the table, previously held a senior position as the head of rural and inclusive banking at ICICI Bank. His deep understanding of the needs and challenges faced by micro, small, and medium enterprises (MSMEs) positions him well to lead Vistaar Finance in its next phase of growth.
In conclusion, Warburg Pincus’s acquisition of a 90% stake in Vistaar Finance for $250 million signals a significant move in the financial sector. This partnership brings together the financial expertise of Warburg Pincus and the established presence of Vistaar Finance in serving underserved segments of the market. With the infusion of capital and the leadership of Avijit Saha, Vistaar Finance is well-positioned to embark on its next phase of growth and continue contributing to the socio-economic development of India.
