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Ananya Birla and Sachin Bansal
Billionaire Kumar Mangalam Biral daughter Ananya Birla founded Svatantra Microfin said it will be acquiring Chaitanya India Fin Credit, a wholly owned subsidiary of Sachin Bansal's Navi Group (Navi) for Rs 1,479 crore.
The deal is expected to be completed by the end of 2023, subject to receipt of regulatory approvals and customary closing adjustments.
Post-acquisition, Svatantra will become India's second largest microfinance entity with a reach of more than 3.6 million active customers through 1,517 branches across 20 states and a combined AUM of Rs 12,409 crore.
Svatantra was started its operations in March 2013, The company offers offers microcredit at affordable rates in the country. With over 7,000+ employees, Svatantra claims to serve over 2.2 million rural customers across 19 states with an AUM of Rs 7,499 crore.
Ananya Birla, Founder and Chairperson of Svatantra, said, "Over the years, the Indian Microfinance industry has been a catalyst in the profound transformation of the Indian financial services sector by democratising finance.” She added, “The proposed acquisition will propel Svatantra to a significant leadership position. The combined 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. I am extremely proud of the team at Svatantra and the relentless efforts they put in everyday towards our shared vision.”
“We are pleased to announce the proposed sale of Chaitanya to Svatantra,” said Sachin Bansal, Chairman and CEO of Navi. “We have seen Chaitanya grow almost 6X in the last 4 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 the Navi Group. We believe that Svatantra is a good fit for Chaitanya and that the company will continue to grow and prosper with the combined expertise of both teams. I am very proud of the hard work the team has put in to be able to achieve this exponential growth in such a short span. As they take on this legacy, I want to extend my best wishes to them for their future endeavours.”
Chaitanya was founded in 2019 and was later acquired by Sachin Bansal in 2019 for about Rs 150 crore. Post-acquisition, Chaitanya claimed to have grown 77% YoY, increasing its book size from about Rs 900 crore in March 2020 to over Rs 4,900 crore.
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