An agreement has been inked for Svatantra Microfin Private Ltd, led by Ananya Birla, to acquire Chaitanya India Fin Credit Private Ltd, a wholly owned subsidiary of Sachin Bansal’s Navi Group, at a valuation of Rs 1,479 crore. The transaction is anticipated to conclude by the end of 2023, as stated in a release by Svatantra.
Following the successful acquisition, Svatantra Microfin will secure the position of the second-largest microfinance entity in India. This achievement will be reflected in its outreach to over 3.6 million active customers through a network of 1,517 branches across 20 states. Their combined asset under management is projected to reach Rs 12,409 crore by March 31, 2023.
Ananya Birla, the Founder and Chairperson of Svatantra, expressed enthusiasm about the acquisition, envisioning it as a significant leap for the organization. The amalgamation will bring forth an extensive reach, facilitating the delivery of diverse financial services to a broad client base spanning various geographical regions.
Sachin Bansal, Chairman and CEO of Navi, commended the strategic alignment of this transaction with their digital-first business focus. He stated, “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.”
Svatantra’s asset under management amounted to Rs 7,499 crore as of March 31, 2023. Chaitanya India Fin, which was acquired by Bansal in 2019, serves 1.4 million customers across 12 Indian states, boasting an asset under management of over Rs 4,900 crore. The company further bolstered its net worth to Rs 721 crore as of March 31, 2023, through a capital raise of Rs 75 crore in June 2023.
It’s noteworthy that Chaitanya India Fin was one of the applicants for the ‘on tap’ licensing for Universal Bank licenses, yet it did not secure in-principle approval from the Reserve Bank of India, along with three other entities in contention.
