Svatantra Microfin to buy Sachin Bansal’s Chaitanya India Fin for Rs 1,479 crore

Ananya Birla-led Svatantra Microfin Private Ltd on Tuesday said it has entered into an agreement to acquire Chaitanya India Fin Credit Private Ltd, a wholly owned subsidiary of Sachin Bansal’s Navi Group, for Rs 1,479 crore.
The transaction is expected to be completed by the end of 2023, Svatantra said in a release.
On completion, the acquisition will make Svatantra the second-largest microfinance entity in the country with a reach of more than 3.6 million active customers through 1,517 branches across 20 states and a combined asset under management of Rs 12,409 crore as on March 31, 2023.
“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,” said Ananya Birla, Founder and Chairperson of Svatantra.
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Navi’s Chairman and chief executive officer Sachin Bansal said, “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. 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 stood at Rs 7,499 crore as on March 31, 2023. Bansal acquired Chaitanya India Fin, an NBFC-MFI, in 2019. The micro lender serves 1.4 million customers across 12 states in the country, with asset under management 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.
Chaitanya India was one of four applicants for ‘on tap’ licensing for Universal Bank licence. However, the Reserve Bank of India did not grant in-principle approval to all the four entities including Chaitanya India.
The other applicants rejected were UAE Exchange and Financial Services, The Repatriates Cooperative Finance and Development Bank Ltd (REPCO Bank) and Pankaj Vaish and others.