The Series B round was also backed by new investor Omidyar Network and existing supporters Elevar Equity and SVB Capital.
Vistaar’s latest tranche of investment follows a $2.7m Series A round from Elevar and SVB in 2010.
The company, which provides financing to small to medium and micro enterprises, said it planned to use the cash to expand its branch network to 180 over the next four years.
Lok Capital co-founder Vishal Mehta said, “We recognize the importance of innovative credit and individual lending to the informal segment.
“We believe Vistaar’s approach of customized and specialized financing is a much needed and more sustainable solution to serve this segment.”
The deal is Lok’s second in the space within six months following its involvement in a $25.5m financing round for Ujjivan Financial Services in February.
That deal came just weeks after the firm closed its second fund with $65m of commitments.
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