Global private equity firm Warburg Pincus on Monday announced that it has acquired a 90 percent stake in non-bank lender Vistaar Finance for a total of $250 million. The deal involves a combination of primary and secondary investments and marks one of the largest financial sector investments made by Warburg in India.

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Warburg Pincus stated in an official statement that the acquisition was done in collaboration with banker Avijit Saha, who will join Vistaar Finance as the new Chief Executive Officer. The 13-year-old company currently operates in 12 Indian states, serving a customer base of 40,000 and employing over 2,500 individuals.

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The stake in Vistaar Finance was purchased by Warburg Pincus from existing investors and the company's founders. As of the end of March, Vistaar had assets under management worth over Rs 3,150 crore. Following the transaction, its net worth has increased to Rs 1,210 crore, with overall capital buffers at 37 percent, according to the PE major.

Warburg Pincus’ managing director Narendra Ostawal said that Vistaar Finance has emerged as a leading lender to small businesses in semi-urban and rural pockets that are underserved by formal sources of credit. Saha, who has been in the industry for over three decades and previously served as the head of rural and inclusive banking at ICICI Bank, said that micro, small and medium enterprises (MSMEs) served by Vistaar are a major contributor to the socio-economic development of the country and Vistaar will embark on next phase of growth now.

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