MUMBAI: In one of the biggest deals in the microfinance industry, Ananya Birla’s Svatantra Microfin Private Ltd (Svatantra), has entered into a definitive agreement to acquire Chaitanya India Fin Credit Private Ltd (Chaitanya), a wholly owned subsidiary of Navi Group (Navi) for a Rs 1,479 crore.
The transaction is expected to be completed by the end of 2023, subject to receipt of regulatory approvals and customary closing adjustments. Flipkart founder Sachin Bansal forayed into financial service by acquiring Chaitanya for `150 crore in October 2019. The proposed acquisition is expected to transform the microfinance landscape, catapulting Svatantra into the second-largest microfinance entity in India with a reach of over 3.6 million active customers through 1,517 branches across 20 states and a combined asset under management of `12,409 crore as of March 31, 2023.
Ananya Birla, founder and Chairperson of Svatantra, said, “Over the years, the microfinance industry has been a catalyst in the transformation of the financial services sector by democratising finance.” She added,“The acquisition will propel Svatantra to a leadership position.
The entity will command a substantial reach, enabling the delivery of a diverse array of financial services to our clients across a geographically diverse portfolio. We are committed to being a responsible lender, and I believe our synergistic strengths and shared ethos will accelerate our ongoing journey to create a unique, valuable and impactful financial services entity.” Svatantra and Chaitanya are new-generation NBFC-MFIs with a strong track record of growth and profitability, leveraging technology to create impact and offer services to rural India.
“We are pleased to announce the proposed sale of Chaitanya to Svatantra. We have seen Chaitanya grow 6X in last four years, making credit accessible to rural India. This transaction is in line with our strategic plan to focus on our digital-first businesses, as we continue our digital-first financial services through Navi Group,” said Navi Chairman and CEO, Sachin Bansal.