MICROCAPITAL BRIEF: Elevar Equity, Omidyar Network, Saama Capital, WestBridge Capital Invest $27m in Equity in India’s Vistaar Finance for Lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

Elevar Equity, which invests in “disconnected communities” from offices in India and the US; Omidyar Network, a US-based investor in “socially responsible” organizations; Saama Capital, an India-focused venture capital fund registered in Mauritius; and WestBridge Capital, an India-based investment company with offices in India, Mauritius and the United States, reportedly have collectively invested INR 1.6 billion (USD 27 million) in Bangalore-based non-banking finance company Vistaar Finance (Vistaar).

Information regarding the proportion of the funds invested by each individual investor, as well as the equity received by each investor, is not available. The additional capital will be used to fund loans to micro-, small and medium-sized enterprises (MSMEs) in India and scale up Vistaar’s branch network to 250 branches and expand its loan portfolio to INR 25 million (USD 423 million) within four years. The loan portfolio of Vistaar is INR 2.4 billion (USD 40.6 million) as of March 31, 2014. Vistaar has 92 branches in India.

Elevar Equity makes investments in development-focused ventures and manages two private equity funds with assets totaling USD 94 million invested in 16 microfinance institutions (MFIs) and other organizations primarily in India and Latin America. Omidyar Network is an investment firm that provides investments and grants to “socially responsible” organizations. As of December 2012, Omidyar Network reported total assets of USD 255 million. Saama Capital is an India-focused venture capital fund. The amount of money managed by the firm is unavailable. WestBridge Capital invests in Indian public and private companies, typically in amounts ranging from USD 10 million to USD 50 million. Financial data for WestBridge are not publicly available. Vistaar is a non-banking finance company that offers loans of up to INR 95,000 (USD 1,606) to micro-, small and medium-sized enterprises (MSMEs). The loan portfolio of Vistaar is worth INR 2.4 billion (USD 40.6 million) as of March 31, 2014. Vistaar has 92 branches in India.

By Alíz Crowley, Research Associate

About Elevar Equity

Elevar Equity is headquartered in the Indian city of Bangalore and also has an office in Seattle in the US state of Washington. The organization makes investments in development-focused ventures. Founded in 2006, Elevar manages two private equity funds with assets totaling USD 94 million invested in 16 microfinance institutions (MFIs) and other organizations primarily in India and Latin America. In 2008, Elevar stopped placing new investments in microfinance in favor of supporting other types of firms that seek to reduce poverty.

About Omidyar Network

Founded in the US in 2004, Omidyar Network is an investment firm that provides investments and grants to “socially responsible” organizations in the areas of microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. Omidyar invests in organizations that are aligned with its goals and “have potential for large-scale impact, have proven leadership, and exemplify innovation.” As of December 2012, Omidyar Network reported total assets of USD 255 million.

About Saama Capital

Saama Capital is an India-focused venture capital fund that was founded in 2006 and was formerly known as SVB India Capital Partners. Based in Bangalore, India, Saama invests in entrepreneurs and ideas with the goal of creating billion dollar companies in India. The amount of money managed by the firm is unavailable.

About WestBridge Capital

WestBridge Capital is an India-focused investment company that was founded in 2011. The company has offices in India, Mauritius and in the United States, and it manages approximately USD 800 million in assets invested in public and private companies. A typical equity investment by WestBridge is in amounts ranging from USD 10 million to USD 50 million. Financial data for WestBridge are not publicly available.

About Vistaar Financial Services Private Limited

Vistaar is a non-banking finance company headquartered in Bangalore, India. Vistaar offers loans up to INR 95,000 (USD 1,606) to micro-, small and medium-sized enterprises (MSMEs). Vistaar offers two types of loans, “Small Business Mortgage Loans” (SBMLs) and “Small Business Hypothecation Loans’” (SBHLs). SBMLs are available to the self-employed, and the SBHLs are available to micro-, small and medium-sized businesses. The loan portfolio of Vistaar is INR 2.4 billion (USD 40.6 million) as of March 31, 2014. As of 2014, Vistaar has 92 branches in the Indian states of Gujarat, Karnataka, Madhya Pradesh, Maharashtra and Tamil Nadu. Vistaar is a non-deposit-taking institution. Further financial data is not available about Vistaar, and the company does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

Sources and Additional Resources

[1] The Economic Times, Vistaar Finance raises Rs 160 crore in fresh funding

MicroCapital, February 22, 2014, SKS Microfinance of India Completes $36m Securitization

MicroCapital, January 2, 2014, Sequoia Capital Sells 1.75% Stake in India’s SKS Microfinance to WestBridge Capital for $4.7m

MicroCapital, June 7, 2010, Elevar and SVB make USD 8.6m Equity Investment in Indian Microfinance Institution Vistaar Livelihood Finance

MicroCapital Universe Profile: Elevar Equity

MicroCapital Universe Profile: Omidyar Network 

MicroCapital Universe Profile: Saama Capital 

MicroCapital Universe Profile: WestBridge Capital 

MicroCapital Universe Profile: Vistaar Financial Services Private Limited

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