Svatantra Microfin, founded by Ananya Birla, is set to acquire Chaitanya India Fin Credit, a subsidiary of Navi Group led by Sachin Bansal, for a sum of Rs 1,479 crore. According to a statement released on Tuesday, the deal is slated to be finalised by the conclusion of 2023.
Upon completion, this acquisition will elevate Svatantra to become India’s second-largest microfinance firm, extending its reach to over 3.6 million active customers through a network of 1,517 branches spanning 20 states. As of 31 March 2023, the combined Assets Under Management (AUM) of the two entities will stand at Rs 12,409 crore.
Both Svatantra and Chaitanya are modern-generation Non-Banking Financial Company-Microfinance Institutions (NBFC-MFIs) that have demonstrated impressive growth and profitability. They have harnessed technology to create a positive impact and provide financial services to rural areas in India.
Ananya Birla, the Founder and Chairperson of Svatantra, remarked, “The Indian Microfinance industry has been instrumental in transforming the financial services landscape by democratizing access to finance over the years.”
Ananya Birla further highlighted, “This proposed acquisition positions Svatantra as a significant leader. The combined entity will possess a substantial outreach, enabling the provision of diverse financial services across a varied geographical portfolio.”
Sachin Bansal, Navi Chairman and CEO, expressed satisfaction with the impending sale of Chaitanya to Svatantra. He emphasised Chaitanya’s impressive growth, which has expanded nearly sixfold in the past four years, facilitating credit accessibility in rural India. This transaction aligns with Navi’s strategic focus on digital-first endeavours within the financial services domain.
Bansal expressed confidence in Svatantra’s suitability for Chaitanya and its potential to continue thriving. He extended his best wishes to the teams involved, acknowledging their dedicated efforts that have led to remarkable growth.
In 2022, the Reserve Bank of India determined Chaitanya India Fin Credit to be unsuitable for an ‘on tap’ banking license.
JM Financial Limited played the role of exclusive financial advisor to Navi for this noteworthy transaction.