PE firms Advent, Multiples to invest Rs 1,930 cr in Svatantra Microfin

The investment follows Svatantra's recent acquisition of Chaitanya India Fin Credit Limited

Ananya Birla’s Svatantra Microfin has sealed a definitive agreement with private equity (PE) firms Advent International and Multiples Private Equity for an investment of Rs 1,930 crore — marking the largest-ever deal by PE players in India’s burgeoning microlending sector.

The investment comes on the heels of Svatantra’s recent acquisition of Chaitanya India Fin Credit.

“Upon the completion of the proposed transaction and merger with Chaitanya, the combined entity will rank among the largest non-banking microfinance companies in India. The current promoter group led by Ananya Birla will maintain a significant majority stake,” stated a joint release by Svatantra and the PE players.

The transaction is contingent upon receiving statutory and regulatory approvals, including the consent of the Reserve Bank of India and the Competition Commission of India.

“This transformative phase for Svatantra propels us towards our goal of becoming the foremost and most impactful microfinance institution, creating a conducive environment for entrepreneurs who fuel India’s growth story,” said Ananya Birla, chairperson, Svatantra.

Established in 2013, Svatantra provides affordable financial and non-financial solutions to women entrepreneurs, making it one of the most differentiated, process, and technology-driven microfinance entities in India.

Shweta Jalan, managing partner at Advent International, commented, “We believe the microfinance sector serves as a cornerstone for financial inclusion for women entrepreneurs in rural areas, and Svatantra is uniquely positioned to create one of the largest and most resilient microfinance institutions. We look forward to supporting the team at Svatantra, led by Ananya Birla, as they embark on their next phase of sustainable growth and profitability.”

Svatantra and its subsidiary, Chaitanya, have a team of more than 17,000 employees, serving over 4.2 million customers across more than 20 states.