Advent, Multiples to invest ₹1,930 crore in Ananya Birla’s Svatantra Microfin
₹1,930 crore in Ananya Birla’s Svatantra Microfin. They said this will be the largest private-equity investment in the sector in India. Mint had reported on the development in February, noting that the Mumbai-based microfinance institution (MFI) would use the funds to expand and consolidate its growth.
The investment, which is subject to statutory and regulatory approvals, follows Svatantra’s recent acquisition of Chaitanya India Fin Credit Limited. It acquired the Bengaluru-based company for ₹1,479 crore in a fully equity-funded deal after the Reserve Bank of India (RBI) denied Chaitanya India Fin Credit a universal banking licence. “Upon completion of the proposed transaction and merger with Chaitanya, the combined entity will be among the largest non-banking microfinance companies in India.
The current promoter group led by Ananya Birla will continue to have a significant majority stake," the company said. Svatantra, launched in 2013, provides financial and non-financial solutions to women entrepreneurs. Once the deal goes through, it will have more than 17,000 employees and over 4.2 million customers across more than 20 states.
Ananya Birla, chairperson of Svatantra, said, “My team and I are grateful to have investors who share our vision. This transformative era for Svatantra propels us towards our goal of becoming the foremost and most impactful microfinance institution." Shweta Jalan, managing partner, Advent International, said, “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. We look forward to supporting the team at Svatantra as
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