Microfinance institution Svatantra Microfin Private Limited, founded by Ananya Birla, is all set to acquire Chaitanya India Fin Credit, an NBFC-MFI arm of Navi Group, Rs 1,479 crore in what is being touted as one of the biggest deals in the microfinance sector.
Navi Group is co-founded by Sachin Bansal, the co-founder of Flipkart.
The deal is likely to be completed by the end of 2023. The acquisition will see Svatantra becoming the second-largest microfinance institution in the country.
“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," Ananya Birla said in a statement.
"We are committed to being a responsible lender, and I believe our synergistic strengths and shared ethos will accelerate our ongoing journey to create a unique, valuable and impactful financial services entity," the statement further said.
“We have seen Chaitanya grow almost 6X in the last 4 years, making credit accessible to rural India. 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," Bansal said. 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, he added.