Ananya Birla founded Svatantra Microfin Ltd has acquired Sachin Bansal-led Navi Group subsidiary company Chaitanya India Fin Credit Pvt Ltd for Rs 1,479 crore. The deal is expected to be completed by the end of 2023, the company said in a statement on Tuesday.
The acquisition will make Svatantra Microfin the second-largest microfinance company in India. It will have a reach of more than 3.6 million active customers through 1,517 branches across 20 states and a combined AUM of Rs 12,409 crore as on March 31, 2023, the company said.
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"The proposed acquisition will propel Svatantra to a significant leadership position. The combined entity will command a substantial reach, enabling the delivery of a diverse array of financial services to our clients across a geographically diverse portfolio," said Ananya Birla, Founder and Chairperson of Svatantra.
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Birla further added, “ We are committed to being a responsible lender, and I believe our synergistic strengths and shared ethos will accelerate our ongoing journey to create a unique, valuable and impactful financial services entity.”
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"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," said Sachin Bansal, Chairman and CEO, Navi, in a statement.
As per the release, JM Financial Limited acted as the financial advisor to Navi for this transaction.
“We believe that Svatantra is a good fit for Chaitanya and that the company will continue to grow and prosper with the combined expertise of both teams,” Bansal further added.