VISTAAR FINANCIAL SERVICES PVT LTD
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Vistaar Financial Services Pvt. Ltd. is a Non-Banking Financial Company (NBFC) that provides loans to small businesses (SB) in rural and semi-urban markets of India and started its operations in 2010. Currently, the company has a total loan portfolio under management of USD 20.4 million, with 20,000 borrowers that are served through its 40 branches in 3 states in Southern India (Tamil Nadu, Karnataka and Maharashtra). Vistaar caters to the segment between productive poor (microfinance) and small- and medium-sized businesses (MSMEs). It focuses on viable, mostly informal MSMEs, of which there are around 30 million in India (currently only 5% of them have access to credit from banks or NBFCs). Despite the large number of financial institutions in India, this segment is not yet served.
What is our funding objective?
FMO has provided Vistaar with Non-Convertible Debentures (NCDs) in local currency with a counter value of USD 5 million. The funds will be utilized for the growth of Vistaar’s loan book towards MSMEs. Vistaar expects to grow to a loan portfolio of approx. USD 60 million in the coming 18 months, and needs to raise additional funding to be able to do so. The growth will be realized both by scaling up in existing states and by expanding in new states like Madhya Pradesh and Gujarat.
Why do we fund this investment?
Vistaar's mission, activties and target clients in rural areas are in line with FMO's focus in India. The company's role in creating access to finance is central to FMO's own mission.
More investments
| Date | Total FMO financing |
|---|---|
| 10/5/2020 | USD 30.00 MLN |
| 6/13/2019 | EUR 0.13 MLN |
| 5/11/2017 | EUR 0.04 MLN |
| 5/11/2017 | EUR 0.10 MLN |
- Website customer/investment
- http://www.vistaarlfi.com
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Effective date
- 8/27/2013
- End date
- 11/5/2018
- Total FMO financing
- INR 300.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B