Small business-focused NBFC Vistaar Financial Services has raised Rs 160 crore from a clutch of PE funds led by WestBridge Capital, along with its existing private equity partners.
Its existing investors include Elevar Equity, Omidyar Network and Saama Capital which have also increased their commitment.
The NBFC will use the proceeds to fund its branch expansion plans.
"We have closed a Rs 160-crore series C investment led by WestBridge Crossover Fund, marking its foray into this segment," a company statement said.
The statement said the money from this round would fund expansion of its network to 250-plus branches over the next four years, with a projected portfolio of over Rs 2,500 crore.
Ernst & Young was financial advisor to Vistaar for the currrent round of fund raising.
"Our goal is to understand and address the needs of the small business customer segment and offer financial products that help our customers grow their enterprises," Vistaar founder and chief executive Brahmanand Hegde said.
"We are very excited to be an investor in Vistaar, and will work with them to build on their success as the leading MSME financing business," WestBridge Capital's Founder and Managing Director Sumir Chadha said.
Vistaar's target market represents MSME customers, less than five per cent of whom have access to credit from the formal financial services sector.
These customers run small yet scalable businesses like powerlooms, light engineering, manufacturing units, provision stores and restaurants.
