Ananya Birla’s Microfinance Firm Secures Sector’s Largest Funding of Rs 1.9k Crore

Ananya Birla’s microfinance company is set to secure significant funding of Rs 1.9k crore, marking the largest investment in India’s microfinance sector. Svatantra Microfin, helmed by Ananya Birla, has entered into a definitive agreement with Advent International and Multiples for this substantial investment, totaling $230 million. This funding represents a landmark in the microfinance industry of India.

The investment comes on the heels of Svatantra Microfin’s recent acquisition of Chaitanya India Fin Credit from Sachin Bansal. Following this acquisition, the combined entity is poised to emerge as one of the largest non-banking microfinance institutions in India. Ananya Birla and the existing promoter group will retain a significant majority stake in the consolidated company. While the precise valuation of the company remains undisclosed by both Svatantra Microfin and its investors, the acquisition of Chaitanya in November 2023 was valued at Rs 1,479 crore.

Expressing her vision for Svatantra Microfin, Ananya Birla stated, “This transformative era for Svatantra propels us towards our goal of becoming the foremost and most impactful microfinance institution, creating a conducive environment for entrepreneurs who fuel India’s growth story.” The completion of this transaction is contingent upon regulatory approvals, including those from the Reserve Bank of India (RBI) and the Competition Commission of India.