Warburg eyes 30pc stake in Vistaar for $150 million

MUMBAI, Sept 18 (Reuters): New York-based private equity firm Warburg Pincus LLC is in talks to invest around $150 million in Indian small-business lender Vistaar Finance, two sources familiar with the matter told Reuters, marking its latest bet in a booming lending market.

Warburg's discussions with Vistaar are for a 30 per cent stake in the shadow lender, the two sources said. Deal talks are at an advanced stage and will value Vistaar at roughly $450 million, said one of the sources.

Businesses like Vistaar in India operate as non-banking financial services companies (NBFC), lending smaller amounts than traditional banks do and targeting mostly customers in towns and villages.