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    Warburg Pincus acquires 95% stake in Vistaar Finance

    Synopsis

    Avijit Saha will be joining the company as the CEO and will be co-investing in partnership with Warburg Pincus. Warburg Pincus, the US-based private equity firm, has acquired a controlling stake in Vistaar Finance, an NBFC lending to MSMEs in India in partnership with ICICI Bank veteran Avijit Saha. The PE fund and Saha acquired about 95% stake in Vistaar for Rs 2,500 crore

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    Warburg Pincus, the US based private equity firm, has acquired a controlling stake in Vistaar Finance, an NBFC lending to MSMEs in India in partnership with ICICI Bank veteran Avijit Saha. The PE fund and Saha acquired about 95% stake in Vistaar for Rs 2,500 crore ($300 million).

    As part of the transaction, Avijit Saha will be joining the company as the CEO and will be co-investing in partnership with Warburg Pincus, stated a press release. Avijit Saha was most recently the Head – Rural & Inclusive Banking and President at ICICI Foundation where he was responsible for Financial Solution to Rural Customers and was also responsible for building the CSR strategy for the Bank.

    Vistaar operates in 12 states, having 40,000 customers, with more than 2,500 employees, and manages an AUM of Rs 3,150 crore as of March 2023. Post the transaction, Vistaar has a net-worth of Rs 1,210 crore with a capital adequacy of 37%.

    “India is on course to becoming a $5 trillion economy over the next few years with the MSME sector playing a key role in achieving this goal. Warburg Pincus sees a significant opportunity in this space. Avijit has a long and successful track record in areas of rural, retail banking and SME credit and we are excited to partner with Avijit in the further build-out of the Vistaar platform,” said Narendra Ostawal, Managing Director, Warburg Pincus.

    “This is a very exciting phase for the Indian MSME sector, which is rapidly transforming and is a major contributor to the socio-economic development of the country. As Vistaar embarks on its next phase of growth, we will continue to build deeper
    understanding of specific customer segments and fulfil their financial needs through customised
    products," said Avijit Saha, CEO, Vistaar Finance.

    Started operations in April 2010 and based in Bengaluru, Vistaar finance provides secured loans to
    micro, small and medium enterprises across 12 states with more than 200 branches.


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