Bengaluru-based Vistaar Finance on Tuesday said it has raised about Rs 225 crore ($30 million) in External Commercial Borrowing (ECB) from FMO – Dutch entrepreneurial development bank.
This is the second line of funding from FMO to Vistaar, and the latest infusion will be deployed to lend to small businesses across the country, a statement said.
Vistaar has now raised over Rs 550 crore of debt financing in seven months this financial year, it added.
"This funding helps underline the core objectives of Vistaar and FMO of lending to small businesses to support their sustainable growth. Onward lending of these funds to small businesses contributes directly to Government of India initiatives like 'Make in India' and 'Atmanirbhar Bharat',” Vistaar Finance Executive Vice Chairman Brahmanad Hegde said.
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, he added.
Vistaar is a non-deposit taking NBFC focussed on lending to small businesses through a network of 200-plus branches.It has assets under management of close to Rs 2,000 crore. Its lender base includes public sector banks, private sector banks, mutual funds, international developmental agencies and large financial institutions.