Ananya Birla's Svatantra Microfin to acquire Sachin Bansal’s Chaitanya India Fin Cred for Rs 1,479 cr

Ananya Birla-founded Svatantra Microfin Private Limited will be acquiring Sachin Bansal's Navi Group's subsidiary Chaitanya India Fin Credit Private Limited for Rs 1,479 crore. The transaction is expected to be completed by the end of 2023, the company said in a statement on Tuesday.

The acquisition, once completed, will make Svatantra the second-largest microfinance company in India 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 as on March 31, 2023, the company said.

Svatantra and Chaitanya are new generation NBFC-MFIs with a strong track record of growth and profitability, leveraging technology to create impact and offer financial services to rural India.

"Over the years, the Indian Microfinance industry has been a catalyst in the profound transformation of the Indian financial services sector by democratising finance.” said Ananya Birla, Founder and Chairperson of Svatantra.

"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," she added.

“We are pleased to announce the proposed sale of Chaitanya to Svatantra,” said Navi Chairman and CEO, Sachin Bansal.

“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," he added.

Bansal also said, "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,” said Bansal.

In 2022, Reserve Bank of India said it found Chaitanya India Fin Credit to be unsuitable for an ‘on tap’ banking licence.

JM Financial Limited acted as the exclusive financial advisor to Navi for this transaction.

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