Vistaar Finance Secures USD 50 Mn DFC Loan To Fund Women Owned MSMEs

New Delhi, Jun 6 (KNN) Vistaar Finance, a prominent lender to micro, small and medium enterprises (MSMEs) in India, has announced securing a USD 50 million loan commitment from the US International Development Finance Corporation (DFC), a US government development finance institution.

According to a press release issued on yesterday, an initial tranche of USD 25 million has already been received from the DFC as part of this broader loan commitment.

This financing comes on the heels of a recent USD 36 million equity investment in Vistaar Finance by the leading global private equity firm Warburg Pincus, underscoring the company's strong growth prospects.

The DFC's investment in Vistaar Finance is aimed at addressing the significant MSME financing gap in India, estimated at over USD 230 billion annually, or 11 per cent of the country's GDP.

Women-owned and -led enterprises, as well as rural MSMEs, face disproportionate challenges in accessing capital, a problem this funding aims to alleviate.

"DFC's USD 50 million investments in Vistaar Finance will expand access to capital for lending to small women-owned and -led enterprises in rural India facing barriers to financing," stated James Polan, Vice President, DFC's Office of Health and Agribusiness.

He added, "DFC is proud to work alongside partners like Vistaar Finance to support increased access to financing for innovative enterprises in India."

Avijit Saha, CEO, Vistaar Finance, expressed gratitude for the DFC's facility, stating, "We are extremely thankful to the US International Development Finance Corporation (DFC) for this facility, which comes to us at the right time and helps us in our goal of strengthening women's lead entrepreneurship, further deepening our presence in rural markets, and reaching out to more unserved and underserved customers."

Established in 2010, Vistaar Finance has been a pioneer in providing long-term loans to the underserved MSME segment in India.

The company claims to have assisted over 250,000 MSMEs across 12 states, helping micro-enterprises enhance their productive capacity and income levels. With over 2,500 employees and an asset under management (AUM) of Rs 4,154 crore, Vistaar Finance has positioned itself as a key catalyst in India's 'Make in India' initiative.

(KNN Bureau)