The funding was led by existing investor Westbridge Capital along with other investors Elevar Equity and Omidyar Network, taking the total equity raised by Vistaar to Rs 475 crore, the company said in a statement.
Vistaar is the only specialised finance provider that caters to MSMEs in rural and small towns, it said.
Vistaar's customers run small yet scalable and profitable businesses such as power looms, light engineering, manufacturing,'kirana' shops, hardware shops, and small restaurants.
The current round of investment will fund the expansion of Vistaar's network to over 250 branches, including in five new states, to reach a projected portfolio of over Rs 2,500 crore over the next three years, it said.
The company will also invest in technology enabled credit processing and workflow management, and roll out customised financial products to cater to its target segment's needs.
Brahmanand Hegde, Co-Founder and CEO, Vistaar Finance said, "Having deeply understood the needs of more than 100,000 customers across seven states and 10 sectors over the last five years, Vistaar is very well positioned to expand to newer territories and to offer a wider range of financial product.