US-based private equity fund Warburg Pincus will acquire a majority stake in non-banking finance company Vistaar Finance, the company said on Monday.
The global private equity firm focused on growth investments has entered into an agreement to acquire a majority stake in Vistaar Finance which is engaged in lending to Micro, Small and Medium Enterprises (MSMEs) in India.
The company, however, did not disclose the financial details of the deal.
Existing shareholders would include WestBridge Capital (WestBridge), Elevar Equity (Elevar), Omidyar Network India (Omidyar) and Saama Capital (Saama), Warburg Pincus said in a release.
The transaction is subject to regulatory and certain other approvals.
Vistaar Finance has assets under management of Rs 2,600 crore with presence in 12 states and as many as 205 branches.
Brahmanand Hegde, Executive Vice Chairman, Vistaar Finance said the investment by Warburg Pincus is a testimony to the strong foundation Vistaar has built.
Warburg Pincus onboarding will enable the underserved segment to achieve economic independence and social well-being, he said.
"We look forward to continuing building on the legacy as we look ahead to the next phase of growth," Ramakrishna Nishtala, MD & CEO, Vistaar Finance said.
Kotak Investment Banking is the exclusive financial advisor to the transaction.
"We believe micro-enterprises in semi-urban and rural India are underserved by formal sources of credit and we believe Vistaar has the potential to fulfil that need gap and be a driver for broad-based growth in those regions and communities.
"Warburg Pincus has a deep history in partnering with exceptional teams, particularly within financial services and looks forward to a similarly exciting future at Vistaar," Narendra Ostawal, Managing Director, Warburg Pincus said.