Vistaar Finance to raise $50m in Debt Financing from US DFC

By Gloria Mathias

Vistaar Finance, an India-based MSME lending institution, has secured a commitment for a loan of up to $50 million from the US government’s development finance institution, the US International Development Finance Corporation (DFC).

The company was founded in 2010 and has developed the MSME financing market providing long-term loans for this segment that has traditionally been underserved or has had to contend with informal high-cost borrowing.

Vistaar’s financing has enabled over 2 lakh MSMEs across 12 states in India since inception to enhance their productive capacity and income levels. The company’s clear vision to serve small businesses with the “Make in India” approach has strengthened over 2,500 employees and AUM of INR 3,100 crores.

Speaking on the development, Avijit Saha, CEO of Vistaar said, “We are extremely thankful to the UFinTecS International Development Finance Corporation (DFC) for committing to this facility, which comes to us at the right time and helping us in our goal of strengthening women’s led entrepreneurship, further deepening our presence in rural markets, and reaching out to more unserved and underserved customers.”

The loan from DFC comes following a recent primary equity infusion of $36 million from Warburg Pincus, a private equity firm focused on growth. DFC’s support is expected to assist Vistaar in expanding its secured MSME lending portfolio in India, emphasising serving women-owned and led enterprises and rural MSMEs.

Brahmanand Hegde and Ramakrishna Nishtala, the Founders of Vistaar said, “In our Vision of ‘Catalyst to the underserved,’ we have created a niche for ourselves empowering small businesses and the self-employed across 12 States in India by providing them with reliable and responsible funding so that they can achieve greater economic and social well-being.”

“DFC’s $50 million investment in Vistaar Finance will expand access to capital for lending to small women-owned and -led enterprises in rural India facing barriers to financing,” said James Polan, Vice President of DFC’s Office of Development Credit. “DFC is proud to work alongside partners like Vistaar Finance to support increased access to financing for innovative enterprises in India.”