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Svatantra Microfin Secures Landmark $230 Million Investment from Advent International and Multiples Private Equity

Svatantra Microfin, led by Ananya Birla, has recently clinched a pivotal agreement with Advent International and Multiples Private Equity, securing a substantial investment of $230 million. This landmark deal represents the largest private equity investment in India's microfinance sector to date.

The investment follows Svatantra's recent acquisition of Chaitanya India Fin Credit Limited, owned by Sachin Bansal, for Rs 1,479 crore. Upon the merger's completion, the combined entity is poised to emerge as one of India's foremost non-banking microfinance companies, with the current promoter group, spearheaded by Ananya Birla, retaining a significant majority stake.

 

Established in 2013, Svatantra Microfin focuses on providing affordable financial and non-financial solutions to women entrepreneurs, garnering recognition as one of India's most innovative and technology-driven microfinance entities. Together with its wholly owned subsidiary, Chaitanya, Svatantra boasts a workforce of over 17,000 employees and serves more than 4.2 million customers across 20+ states in India.

Advent International has a robust presence in India, with approximately $6 billion committed across 18 investments since 2007. Notable investments in the financial services sector include Yes Bank, Aditya Birla Capital, and KreditBee. Multiples Private Equity has made significant investments across various sectors, with notable investments in Cholamandalam Finance, RBL Bank, and Vastu.

 

Ananya Birla, Chairperson of Svatantra, expressed gratitude for the investors' support. Advent International and Multiples Private Equity expressed confidence in Svatantra's potential to drive financial inclusion for women entrepreneurs in rural areas. Shweta Jalan, Managing Partner at Advent International, highlighted Svatantra's unique position in creating a resilient microfinance institution. Renuka Ramnath, Founder, MD, and CEO of Multiples, emphasized their commitment to supporting Svatantra's journey towards expansion and impact.

 

The transaction is contingent upon regulatory approvals, including those from the Reserve Bank of India and the Competition Commission of India.


 

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