Team Startupcity

• Vistaar Financial Services raises Rs 1,360 crore from Motilal Oswal Alternates, ABC Impact, and others.
• Avijit Saha joins as CEO, early investors WestBridge, Elevar, Omidyar, and Saama exit.
• Revenue rises 29.4% to Rs 684.7 crore and net profit grows 47.1% to Rs 147.1 crore in 2023-24.

Small-business financier Vistaar Financial Services Pvt. Ltd has raised Rs 1,360 crore from Motilal Oswal Alternates, Singapore-based impact investor ABC Impact, and other investors, the company said in a statement on 25 August. The funding included Rs 870 crore in primary capital and Rs 490 crore from secondary share sales.

The deal also saw the exits of early investors including WestBridge Capital, Elevar Equity, Omidyar Network India, and Saama Capital. Prior to this round, Vistaar had raised close to $117 million across multiple funding rounds, with a valuation of around $280 million, according to Tracxn.

As part of the transaction, Avijit Saha joined Vistaar as CEO. Narendra Ostawal, Managing Director and Head of India private equity at Warburg Pincus, said, “Vistaar has established itself as a leading lender and partner for underserved MSMEs, an essential segment for India’s long-term economic progress. Under Avijit’s leadership, the company has accelerated growth with discipline and purpose”.

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Vistaar reported revenues of Rs 684.7 crore in 2023-24, up 29.4% from Rs 529.3 crore in 2022-23. Net profit rose 47.1% to Rs 147.1 crore, compared with Rs 100 crore a year ago. The company is yet to file its 2024-25 financials with the Ministry of Corporate Affairs.

Avendus Capital acted as the exclusive financial advisor to Vistaar and its shareholders for the transaction.