Major MSME lender Vistaar Finance on Tuesday said that it has raised $30 million (approximately Rs 221 crore) External Commercial Borrowing (ECB) from the Dutch entrepreneurial development bank FMO. This is the second line of funding from FMO to Bengaluru-based lender which has now raised over Rs 550 crore of debt financing in just seven months of this financial year.
A statement. Issued by Vistaar said that these funds will be deployed to lend to small businesses across the country.
Brahmanad Hegde, Executive Vice Chairman, Vistaar Finance, said, “This funding helps underline the core objectives of Vistaar & FMO of lending to small businesses to support their sustainable growth,”
“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.”
Vistaar is a non-deposit-taking-non-banking financial company (NBFC) focussed on lending to small businesses through a network of 200 plus branches. The company said it has assets under management of close to Rs 2,000 crore.
Founded in 2010, by Brahmanad and Ramakrishna Nishtala, Vistaar has diversified lender base includes public sector banks, private sector banks, mutual funds, international developmental agencies and large financial institutions.