Bengaluru-based MSME lender Vistaar Finance on Tuesday announced that it has raised $30 million (about Rs 225 crore) external commercial borrowing (ECB) from Dutch development bank FMO.
This is the second line of funding from FMO to the Bengaluru-based lender, which has now raised over Rs 550 crore of debt financing in just seven months of this financial year.
The funds will be deployed to lend small businesses across the country, the company said in a statement.
“This funding helps underline the core objectives of Vistaar and FMO of lending to small businesses to support their sustainable growth,” Vistaar Finance executive vice-chairman Brahmanad Hegde said.
“This fundraising is a strong endorsement of Vistaar’s sustainable business model, risk management capabilities even during a pandemic, its ability to grow in the current challenging and critical times, as well as strong shareholding,” he added.
Founded in 2010 by Hegde and Ramakrishna Nishtala, Vistaar is a non-deposit taking NBFC focussed on lending to small businesses through a network of 200-plus branches. It has raised almost $76 million in funding so far from several investors including Elevar Equity, Saama Capital, WestBridge Capital, and Omidyar Network India Advisors.
Vistaar has assets of close to Rs 2,000 crore under its management. Its lender base includes public sector banks, private sector banks, mutual funds, international development agencies and large financial institutions.
