Ananya Birla’s Svatantra Microfin Private Limited (Svatantra) on Tuesday said that it has entered into a definitive agreement to acquire Chaitanya India Fin Credit Private Limited (Chaitanya), a subsidiary of Navi Group (Navi). According to the company, the deal valued at Rs 1,479 crore is expected to be completed by the end of 2023, subject to regulatory approvals and customary closing conditions.

Share Market Live

NSE

This acquisition, once completed, is likely to transform Svatantra into the second-largest microfinance entity in India, with more than 3.6 million active customers across 20 states through 1,517 branches and a combined Assets Under Management (AUM) of Rs 12,409 crore as of March 31, 2023, the company said.

Ananya Birla, Founder and Chairperson of Svatantra, emphasised the significance of this move, stating, "The combined entity will command a substantial reach, enabling the delivery of a diverse array of financial services."

"Over the years, the Indian Microfinance industry has been a catalyst in the profound transformation of the Indian financial services sector by democratising finance... 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,” she said.

Sachin Bansal, Chairman and CEO of Navi Group, spoke highly of Chaitanya's growth trajectory and its alignment with Svatantra's strengths. "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 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, the company said in a statement.

Founded by Ananya Birla in 2012 and commencing operations in March 2013, Svatantra is a microfinance entity providing accessible microcredit solutions to over 2.2 million rural customers across 19 states.

Chaitanya, founded in 2009, was acquired by Sachin Bansal in October 2019 (along with its parent entity, now called Navi Finserv Limited) for about Rs 150 crore. Since the acquisition Chaitanya’s business has seen a growth rate of 77 percent YoY, increasing its book size from about Rs 900 crore in March 2020 to over Rs 4900 crore in March 31, 2023.

The company services 1.4 million customers across 12 states in India with an AUM of over Rs 4,900 crore. It had a net worth of Rs 721 crore as on March 31, 2023 which was shored up through a further capital raise of Rs 75 crore in June 2023.

(Edited by : Anushka Sharma)