Financial Inclusion | October 13, 2022

Warburg Pincus takes control of Indian micro-enterprise lender Vistaar Finance

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 13 — New York-based Warburg Pincus is acquiring a majority stake in Vistaar Finance, an India-based non-bank financial company that provides credit to micro-enterprises in semi-urban and rural areas.

India is home to nearly eight million micro-, small- and medium-sized enterprises that employ roughly 110 million workers and contribute approximately 30% of the country’s GDP but often struggle to access credit in the formal financial system.

In a statement, Warburg’s Narendra Ostawal said the private equity firm, which has $85 billion under management, believes Vistaar can be “a driver for broad-based growth.” The acquisition is subject to regulatory and other approvals.

Financial inclusion

Vistaar launched in 2010 to provide secured loans to underserved small businesses in India such as local general stores, garment shops, hotels and bakeries that are often shut out by traditional lenders. Vistaar has deployed more than $30 million in loans across a dozen Indian states via more than 200 branches.

Warburg’s acquisition provides an exit for early backers, including Elevar Equity, Omidyar Network and WestBridge Capital.