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Business News/ Industry / Advent, Multiples to invest 1,930 crore in Ananya Birla’s Svatantra Microfin

Advent, Multiples to invest ₹1,930 crore in Ananya Birla’s Svatantra Microfin

The investment follows Svatantra’s recent acquisition of Chaitanya India Fin Credit Limited for ₹1,479 crore after the RBI denied Chaitanya a universal banking licence.

Ananya Birla, founder, Svatantra Microfinance. Photo: Abhijit Bhatlekar/MintPremium
Ananya Birla, founder, Svatantra Microfinance. Photo: Abhijit Bhatlekar/Mint

Private-equity funds Advent International and Multiples said they will invest 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 they embark on their next phase of sustainable growth and profitability."

Renuka Ramnath, founder, MD and CEO of Multiples, said, “[Svatantra’s] recent acquisition of Chaitanya brings together two exceptional platforms and management teams. In line with Multiples’s ethos of powering new possibilities, we look forward to partnering the Svatantra team in its journey of expanding products, stepping up technology, and enhancing analytics to widen the reach of its transformational impact."

Svatantra reported a total income of 1,396 crore and profit after tax of 130 crore in FY23, according to data from Crisil. In FY22 its total income was 831 crore and profit 47 crore.

Advent has made 18 investments totalling $6 billion, including $1.2 billion across six investments in the financial-services sector (including Chaitanya). It has also invested in Yes Bank, Aditya Birla Capital, KreditBee, and ASK Investment Managers Pvt Ltd, among others. Multiples has also invested in several financial-services companies, including Cholamandalam Finance, Veritas Finance, Kogta Financial, APAC Financial Services, Acko Tech and Niyo.

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Samiksha Goel
Samiksha, a seasoned journalist at Mint based in Bengaluru, specialises in covering startup ecosystems. With a keen interest in understanding the dynamics of emerging startups, she seeks out compelling narratives to share with her audience. Previously associated with The Morning Context, Samiksha delved into long-form investigative pieces focusing on consumer internet startups. Her journey in journalism began with contributions to Deccan Herald and New Indian Express, where she covered both startup ventures and the food industry. Drawing from her background in philosophy, Samiksha strives to infuse depth into her storytelling. Outside of work, she enjoys reading books and exploring the diverse cafe culture of Bengaluru. Eager for engaging discussions, Samiksha never misses an email and is always open to conversations.
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Published: 04 Mar 2024, 07:58 PM IST
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