Svatantra Microfin to acquire Navi Group's Chaitanya India

Microfinance institution Svatantra Microfin Private Limited has entered an agreement to acquire Sachin Bansal-led Navi Group's subsidiary Chaitanya India Fin Credit Private Limited for Rs 1,479 crore.

The transaction is expected to be completed by the end of 2023, Svatantra Microfin and Navi said in a joint statement.

To recall, Bansal was looking for a universal banking license for Chaitanya India for a long time. However, the Reserve Bank of India rejected the company’s application in May last year. The rejection was deemed as a setback for Bansal’s plan of setting up a full-service banking platform.

It is worth highlighting that Navi generated more than 32% of its revenue from microfinance business run via Chaitanya India as of FY22.

Led by Ananya Birla, Svatantra claims to have a reach of more than 3.6 million active customers through 1,517 branches across 20 states in the country. Over a decade-old company, the microfinance platform provides affordable financial and non-financial solutions to women entrepreneurs in rural areas.

With this acquisition, Svatantra claims to be the second largest microfinance entity in India with a combined asset under management of Rs 12,409 crore as on March 31, 2023.

"...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.