Svatantra Microfin Private Limited, an Indian non-banking financial company-microfinance institution (NBFC-MFI) recently agreed to pay INR 15 billion (USD 179 million) to India-based Navi Group in exchange for its fully-owned subsidiary Chaitanya. Navi was advised on the deal by the Mumbai-based JM Financial Group.
Based in the city of Bangalore, Chaitanya was registered as an NBFC in 2009. The firm provides group and individual loans to 1.4 million low-income clients via 713 branches in 12 states, and it reports total assets of INR 44 billion (USD 531 million) as of March 2023.
Svatantra Founder and Chair Ananya Birla stated, “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. 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.”
Sachin Bansal, Navi Chairman and CEO, described the deal as “in line with our strategic plan to focus on our digital-first businesses.”
Founded in 2012, Svatantra offers rural women insurance as well as loans ranging in size from INR 5,369 (USD 65) to INR 300,000 (USD 3,632) with terms of up to three years. As of March 2023, the MFI serves 3.6 million clients via 1,517 branches. Svatantra disbursed INR 45 billion (USD 551 million) in loans during the 12 months ending March 2022 ending the period with a gross loan portfolio of INR 50 billion (USD 600 million) and total assets of INR 58 billion (USD 700 million).
Established in 2018, Navi has the goal of “making financial services simple, transparent and accessible to all.” The organization offers loans, medical insurance and mutual fund investments. As of March 2022, the group reported assets totaling INR 86 billion (USD 1 billion).
By Renata Samadova, Research Associate
Sources and Additional Resources
Svatantra press release
https://www.svatantramicrofin.com/press-release/ananya-Birla-svatantra-set-to-acquire-sachin-bansal-chaitanya-for-INR-1479cr
Chaitanya homepage
https://www.chaitanyaindia.in
Chaitanya 2022-2023 annual report
https://www.chaitanyaindia.in/wp-content/uploads/2023/08/CIFCPL-Annual-Report-2022-23.pdf
Navi homepage
https://navi.com
Navi financials
https://navi.com/corporate-governance
Svatantra homepage
https://www.svatantramicrofin.com
Svatantra 2021-2022 annual report
https://www.svatantramicrofin.com/pdf/annualreport/annual_report_2021_22_with_covering.pdf
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