Navi Group’s Chaitanya India to be acquired by Svatantra Microfin for Rs 1479 Cr
The subsidiary of the Sachin Bansal-led Navi Group, Chaitanya India Fin Credit Private Limited, will be purchased by microfinance organization Svatantra Microfin Private Limited for Rs 1,479 crore.
According to a joint statement from Svatantra Microfin and Navi, the transaction is anticipated to close by the end of 2023.
Recall that Bansal spent a considerable amount of time seeking a universal banking license for Chaitanya India. But in May of last year, the Reserve Bank of India rejected the company’s application. Bansal’s intention to establish a full-service banking platform was thought to have been hindered by the rejection.
It is important to note that as of FY22, Navi’s microfinance business, operated through Chaitanya India, accounted for more than 32% of its revenue.
Svatantra, a company run by Ananya Birla, asserts to have 1,517 branches spread across 20 states that serve more than 3.6 million active customers. The microfinance platform, a business with over ten years of experience, offers rural women entrepreneurs affordable financial and non-financial solutions.
As of March 31, 2023, Svatantra claims to have combined assets under management totaling Rs. 12,409 crores, making it the second-largest microfinance organization in India.
“…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 in the statement.
