The investment follows Svatantra’s recent acquisition of Chaitanya India Fin Credit Limited.
Ananya Birla’s Svatantra Microfin Pvt. Ltd. has entered into a definitive agreement with Advent International and Multiples Private Equity for an investment of $230 million. This deal marks the largest investment by private equity investors in the microfinance sector in India.
The investment follows Svatantra’s recent acquisition of Chaitanya India Fin Credit Limited. Following the acquisition, the current promoter group led by Ananya Birla, daughter of billionaire industrialist Kumar Mangalam Birla, will continue to have a significant majority stake.
Started in 2013, Svatantra provides affordable financial and non-financial solutions to women entrepreneurs. Svatantra, along with its wholly owned subsidiary, Chaitanya, today serves over 4.2 million customers across 20+ states.
Commenting on the investment, Ananya Birla, chairperson, Svatantra, said, “My team and I are grateful to have investors on board who share our vision.”
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.”
The transaction is subject to the receipt of statutory and regulatory approvals, including the approval of the Reserve Bank of India and the Competition Commission of India.
“In line with Multiples’ ethos of powering new possibilities, we look forward to partnering with the Svatantra team in its journey of expanding products, stepping up technology, and enhancing analytics to widen the reach of its transformational impact,” said Renuka Ramnath, founder, MD, and CEO, Multiples PE.
The microfinance sector in India has been growing significantly. The sector added 80 lakh women clients during 2022-23, as per the India Microfinance Review FY23 report. Similarly, in the financial year 2023, the sector saw growth in loan portfolios and better loan quality compared to the previous year.