Ananya Birla’s Svatantra Microfin bags $230m from Advent & Multiples

By Gloria Mathias

Svatantra Microfin, founded and chaired by Ms Ananya Birla, has entered into a definitive agreement with Advent International (Advent), a private equity investor, and Multiples Private Equity (Multiples), 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 (Chaitanya). Upon completion of the proposed transaction and merger with Chaitanya, the combined entity will be amongst the largest non-banking microfinance companies in India. The current promoter group led by Ms Ananya Birla will continue to have a significant majority stake.

Since starting its operations in 2013, Svatantra, which provides affordable financial and non-financial solutions to women entrepreneurs, has emerged as a differentiated process and technology-driven microfinance entity in India.

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 are thrilled to announce Advent’s investment in Svatantra. 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 Ms. 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.

The transaction is subject to receipt of statutory and regulatory approvals, including the approval of the Reserve Bank of India and the Competition Commission of India.