Svatantra Microfin, under the leadership of Ananya Birla, has recently finalized a significant agreement with Advent International and Multiples Private Equity, securing a substantial investment totaling $230 million. This deal marks a pivotal moment, representing the largest private equity investment in India’s microfinance sector to date.
The investment follows Svatantra’s acquisition of Chaitanya India Fin Credit Limited, owned by Sachin Bansal, for Rs 1,479 crore, just seven months prior. Upon the completion of this proposed transaction and merger with Chaitanya, the combined entity is poised to become one of India’s leading non-banking microfinance companies, as outlined in the company’s statement. Ananya Birla and her current promoter group will retain a significant majority stake in the company.
Since its establishment in 2013, Svatantra has distinguished itself as a pioneer in providing affordable financial and non-financial solutions tailored to women entrepreneurs. Leveraging advanced processes and technology, Svatantra, along with its wholly owned subsidiary Chaitanya, boasts a workforce exceeding 17,000 employees and serves over 4.2 million customers across more than 20 states in India.
Ananya Birla, Chairperson of Svatantra, expressed her gratitude for the investors who share the company’s vision, emphasizing the transformative impact this investment will have on Svatantra’s journey towards becoming a premier microfinance institution. Shweta Jalan, Managing Partner at Advent International, highlighted the importance of the microfinance sector in fostering financial inclusion for rural women entrepreneurs and expressed enthusiasm for supporting Svatantra’s sustainable growth under Ananya Birla’s leadership.
Renuka Ramnath, Founder, MD, and CEO of Multiples, echoed the sentiment of backing Ananya Birla in her endeavor to establish Svatantra as a leading institution in the field of financial inclusion. She emphasized the potential of Svatantra’s recent acquisition of Chaitanya and reiterated Multiples’ commitment to empowering new possibilities through strategic partnerships.
The transaction is contingent upon obtaining necessary statutory and regulatory approvals, including those from the Reserve Bank of India and the Competition Commission of India, according to the company. Advent International’s investment history in India spans back to 2007, totaling approximately $6 billion across various sectors, including financial services. Multiples, likewise, has made notable investments in a diverse range of companies within the financial services sector and beyond, reaffirming its commitment to supporting transformative ventures.