Bengaluru, 25th August, 2025: Vistaar Financial Services Pvt Ltd, India’s leading micro-enterprise lender, today announced it has raised ₹1,360 crore in its latest funding round, including ₹870 crore in primary capital to accelerate its next phase of growth. The investment was led by Motilal Oswal Alternates, with significant participation from Singapore-based impact investor ABC Impact and other prominent investors.
The funding marks a pivotal moment for Vistaar as it continues transforming India’s MSME lending landscape. Since global private equity firm Warburg Pincus acquired a majority stake in 2023, the company has undergone a comprehensive evolution under Managing Director & CEO Avijit Saha’s leadership, scaling operations across 12 states with over 250 branches while maintaining unwavering focus on financial inclusion and credit quality.
Powering India’s Economic Engine
Currently managing over ₹5,000 crore in assets under management (AUM), Vistaar has established itself as a critical financial lifeline for India’s underserved micro-enterprises. The company maintains a robust capital adequacy ratio exceeding 50%, holds an A+ (Stable) credit rating, and delivered mid-teens return on equity in FY25—demonstrating the sustainable economics of serving this vital segment.
Vistaar’s 100% secured lending model targets the backbone of India’s economy: small shopkeepers, manufacturers, kirana stores, power looms, and home-based businesses that have historically been excluded from formal financial services. Through its network of over 3,100 employees, the company has become a trusted partner for micro-enterprises seeking growth capital.
“We are delighted to welcome new financial partners who share our mission of enabling credit access to underserved micro-enterprises across semi-urban and rural India,” said Avijit Saha, Managing Director & CEO of Vistaar Finance. “This investment allows us to deepen our grassroots presence, drive customer-centric innovation and product diversification, while strengthening our brand positioning as we create greater value for all stakeholders.”
Technology-Driven Transformation
Over the past two years, Vistaar has undergone a comprehensive transformation, strengthening its leadership team, deepening its technology stack, and enhancing analytical and cybersecurity capabilities. This technology-enabled approach has allowed the company to scale efficiently while maintaining the personalized service essential for micro-enterprise lending.
Narendra Ostawal, Managing Director & Head of India Private Equity at Warburg Pincus, commented, “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. We believe in building enduring businesses through long-term partnerships and are pleased to welcome new investors as Vistaar continues advancing its mission.”
Impact-Driven Growth
The investment reflects growing recognition of MSMEs’ critical role in India’s economic development. These businesses, which employ millions and drive local economies, have long faced significant barriers to accessing formal credit—a gap that Vistaar is systematically addressing.
Vinit Mehta, Managing Director at Motilal Oswal Alternates, added, “Vistaar’s leadership in MSME lending, particularly in semi-urban and rural India, aligns strongly with our investment philosophy of backing transformative, high-impact platforms enabling last-mile credit delivery. We look forward to working with the Vistaar team in their next growth phase, anchored in strong corporate governance and risk management.”
Sugandhi Matta, Chief Impact Officer at ABC Impact, remarked, “Vistaar’s mission to provide timely credit to India’s underserved MSME businesses aligns closely with our impact mandate. We look forward to supporting their continued expansion and deepening their reach across a segment that plays a vital role in India’s economic engine.”
Building for the Future
The new capital will enable Vistaar to expand its geographic footprint, enhance its technology platform, and develop innovative products tailored to the evolving needs of micro-enterprises. The company’s focus on sustainable, secured lending positions it well to capture the massive opportunity in India’s underserved MSME segment.
Founded in 2010 and headquartered in Bengaluru, Vistaar has built its reputation on understanding the unique needs of micro-enterprises and delivering financial solutions that enable business growth while maintaining strict risk management standards.
Transaction Details: Avendus Capital served as exclusive financial advisor to Vistaar Finance and its shareholders on the transaction.
About Vistaar Finance Vistaar Financial Services provides secured loans to micro, small, and medium enterprises across India through a network of 250+ branches spanning 12 states. Serving over 3,100 employees, the company specializes in 100% secured lending to small businesses including shops, manufacturing units, kirana stores, and home-based industries that lack access to organized funding. Since beginning operations in 2010, Vistaar has established itself as a trusted partner for India’s underserved micro-enterprise sector.
For more information, visit: www.vistaarfinance.com
