Ananya Birla's Svatantra to acquire Navi Group's Chaitanya for Rs 1,479 cr

The acquisition is set to position Svatantra as the second largest NBFC-MFI in India, fostering a boost to microfinance reach and impact

Ananya Birla's Svatantra Microfin Private Limited (Svatantra) has entered into a definitive agreement to acquire Chaitanya India Fin Credit Private Limited (Chaitanya), a wholly owned subsidiary of Navi Group (Navi). The anticipated transaction, valued at Rs 1,479 crore, is projected to conclude by the close of 2023, subject to regulatory approvals and customary closing adjustments.

This strategic acquisition is poised to propel Svatantra to the second-largest microfinance entity in India, wielding a collective reach of over 3.6 million active customers via 1,517 branches spread across 20 states. As of March 31, 2023, the combined assets under management (AUM) are expected to surge to Rs 12,409 crores.

Ananya Birla, founder and chairperson of Svatantra, emphasised the transformative role of the Indian microfinance industry. Birla stated, "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. 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."

Navi Chairman and CEO, Sachin Bansal, expressed his satisfaction with the proposed sale, highlighting Chaitanya's remarkable growth, which expanded nearly sixfold over four years, providing credit access to rural India. He further underscored the alignment of Chaitanya with Svatantra's vision, anticipating continued growth and prosperity under the combined expertise of both teams.

The transaction was facilitated with JM Financial Limited's support, serving as Navi's exclusive financial advisor.

As earlier reported by Business Standard, as of March 2023, the microfinance gross loan portfolio was reported to cross Rs 5 trillion, serving over 130 million borrowers, compared with a portfolio of Rs 51,773 crore and approximately 70 million borrowers back in March 2012. The borrower base has doubled, and the portfolio has grown tenfold since 2012. The fast-growing 'Individual Loan' portfolio was not included in these numbers.