Warburg Pincus LLC is in discussions to invest roughly $150 million in Vistaar Finance, an Indian small-business lender. According to two sources, the negotiations with Vistaar are for a 30% interest in the shadow lender.
The discussions are nearing completion, and Vistaar will be valued at around $450 million. Vistaar is already supported by Saama Capital and Westbridge Capital in India. By March 2021, the NBFC industry in India would have assets totaling more than 54 trillion rupees ($680 billion). Vistaar makes small company loans available to retailers, mills, motels, and manufacturing. It has 196 branches in 12 Indian states and has so far lent more than $300 million.
According to ICRA, Vistaar had a net profit of $9.3 million in the fiscal year ending March 2022. Warburg Pincus is in negotiations with investors to raise $16 billion for its latest flagship global private equity fund, the firm’s largest ever. Warburg has spent more than $5 billion in India during the last two decades. Its most recent investments have included startups and consumer brands including earphone manufacturer boAt and ride-hailing service Ola.