Ananya Birla's Svatantra to get Rs 1,930 cr capital from Advent, Multiples

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Private equity majors Advent International and Multiples on Monday committed to invest Rs 1,930 crore in Ananya Birla-promoted microlender Svatantra Microfin for an undisclosed stake.

Birla, the daughter of billionaire Kumar Mangalam Birla, will continue to hold a "significant majority stake" in the microlender even after the infusion, a statement said, claiming this to be the largest investment in any microfinance institution. At present, Svatantra and its wholly-owned subsidiary Chaitanya have a team of 17,000 employees serving 42 lakh customers in over 20 states.

The microfinance lender, which was founded in 2013, acquired Chaitanya India Fin Credit for Rs 1,479 crore in August last year.

Advent's past investments include a bet on Aditya Birla Capital, the Kumar Mangalam Birla-led Aditya Birla Group's non-bank lending arm.

In a statement, Ananya Birla termed the investment as a "momentous occasion" and added that it will propel it towards its goal of becoming the "most impactful microfinance institution".

"We believe the microfinance sector serves as a cornerstone for financial inclusion for women entrepreneurs in rural areas, and Svatantra is uniquely placed to create one of the largest and most resilient microfinance institutions," Shweta Jalan, Advent's managing partner, said.

Renuka Ramnath, the founder, managing director and chief executive of Multiples, said the acquisition of Chaitanya has brought together two exceptional platforms and management teams.

"We look forward to partnering with the Svatantra team in its journey of expanding products, stepping up technology and enhancing analytics to widen the reach of its transformational impact," she added.

The deal has to be cleared by the Reserve Bank of India and the Competition Commission of India.