WestBridge leads Series C round for India's Vistaar Finance

Existing investors Elevar Equity, Omidyar Network and Saama Capital also participated in the round.

Set up in 2010, Vistaar Finance claims to target the missing middle income segment - which includes customers with an annual income of INR120,000 to INR1 million - that is not effectively served by the formal financial system.

According to AVCJ Research, the firm previously raised around INR550 million across two funding rounds. It receievd INR150 million from Elevar and Silicon Valley Bank (SVB) India in 2010, and then INR400 million in 2012 when Elevar and SVB India returned alongside Lok Capital, Omidyar and Saama.

Vistaar will use the fresh capital to expand its branch network to over 250 centers over the next four years with a projected portfolio of more than INR25 billion. As of January, Vistaar had a loan portfolio of INR2 billion with 23,600 borrowers across 74 branches.

Westbridge made its investment via the WestBridge Crossover Fund, a 2011 vintage vehicle that raised an initial $525 million and then added a further $325 million from investors earlier this year. The vehicle, which typically targets PIPE deals, is described as an evergreen fund without a specific investment cycle.

This is WestBridge's second NBFC investment this year. The GP invested INR848.9 million in Chennai-based Cholamandalam Investment & Finance in March, acquiring shares from the International Finance Corporation (IFC).

Ernst & Young served as the financial advisor to Vistaar for this round of funding.

 

 

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• Topics
• Early-stage
• South Asia
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• India
• WestBridge Capital Partners
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