Ananya Birla’s Svatantra to acquire Sachin Bansal-backed Chaitanya Fin for Rs 1,479 cr

The transaction is expected to be completed by the end of 2023.

Ananya Birla’s Svatantra Microfin is set to acquire Sachin Bansal-backed Chaitanya India Fin, a wholly owned subsidiary of Navi Group (Navi) for Rs 1479 crore, the company said in a statement on August 8.

“Subject to receipt of regulatory approvals and customary closing adjustments, the transaction is expected to be completed by the end of 2023,” said the release.

The proposed acquisition is expected to turn Svatantra into the second largest microfinance entity in India with a reach of more than 3.6 million active customers through 1,517 branches across 20 states and a combined asset under management (AUM) of Rs 12,409 crore as on March 31, 2023..

Navi Chairman and CEO Sachin Bansal commeting on the proposed sale of Chaitanya to Svatantra, said they are confident the collaborative expertise of both teams will foster continued growth and success for Svatantra.

“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," Sachin Bansal said.

"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. I am very proud of the hard work the team has put in to be able to achieve this exponential growth in such a short span. As they take on this legacy, I want to extend my best wishes to them for their future endeavours,” Bansal added.

Chaitanya was founded in 2009 and was acquired by Sachin Bansal in October 2019 (along with its parent entity, now called Navi Finserv Limited) for about Rs 150 crore.

Chaitanya Fin was among the applicants for a Universal Bank Licence, according to the list of applicants released by the Reserve Bank of India (RBI) in April 2021.

But later, on May 17, 2022, the central bank said that it had found six applicants not suitable to be given licences to run universal banks and small finance banks, or SFBs.

RBI said those found not suitable for universal bank permits were UAE Exchange and Financial Services Limited, the Repatriates Cooperative Finance and Development Bank Limited (REPCO Bank), Chaitanya India Fin Credit Private Limited, and Pankaj Vaish and others.

JM Financial Limited acted as the exclusive financial advisor to Navi for the transaction.