Ananya Birla’s Svatantra Microfin Pvt. Ltd. has entered into a definitive agreement with Advent International and Multiples Private Equity for an investment of ₹1,930 crore, or $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 Ltd. 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.
businessline reported on December 17 about the talks between Svatantra and Multiples Alternate Asset Management.
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Ananya Birla, Chairperson, Svatantra, said, “This investment by Advent and Multiples marks a momentous occasion for us. My team and I are grateful to have investors on board who share our vision. This transformative era for Svatantra propels us towards our goal of becoming the foremost and most impactful microfinance institution, creating a conducive environment for entrepreneurs who fuel India’s growth story.”
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 are delighted to back Ananya Birla in building Svatantra to be the best-in-class institution delivering inclusion at scale. Its recent acquisition of Chaitanya brings together two exceptional platforms and management teams. 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.
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Advent has been investing in India since 2007. Since inception, Advent has committed around $6 billion across 18 investments, of which $1.2 billion has been committed in the financial services sector across 6 transactions, including the current transaction.
Multiples has investments in Cholamandalam Finance, RBL Bank, Vastu (a tech-led housing finance business), Veritas Finance (a leading MSME financier), and Acko Tech, among others.