Svatantra Holding Private Limited Acquires 100 Percent Stake in Micro Housing Finance Corporation
Mumbai, Maharashtra, India
Svatantra Holding Private limited acquires (SMPL) 100 percent stake in Micro Housing Finance Corporation (MHFC) for approximately 300 cr.
Svatantra Holding Private limited acquires (SMPL) 100% stake in Micro Housing Finance Corporation (MHFC) for approximately 300 cr. The acquisition helps Ms. Ananya Birla to expand her business and further the vision towards serving the financially excluded customer segment by offering differential banking solutions.
Commenting on the development, Ms. Ananya Birla, Founder and Chairperson of Svatantra Microfin Pvt. Ltd. and Co-Chairperson of ASSOCHAM Microfinance said, “We are elated to bring MHFC into Svatantra family. MHFC offers Svatantra a huge synergy by providing our clients with an opportunity to buy homes. We have tied up with builders in semi-urban areas and tell them about the flats that builders can offer, while providing the loan. Similar to Svatantra Microfin, MHFC is based on the tenets of entrepreneurship, transparency and innovation. Under the GoI initiative of Housing for all by 2022 combined with our continued focus to serve the underserved, I am sure we will create a valuable platform for future.”
Svatantra Microfin, the first venture of Ms. Birla, is a systemically important NBFC-MFI. In a short span of 6 years, SMPL has emerged as the most differentiated process and technology-driven microfinance entity, which offers micro-credit at the lowest rates in the country. SMPL today with a team of 1600 employees serves over 350,000 rural customers across 84 districts in 9 states with a loan book close to INR 750 cr.
MHFC vision is to help financially excluded (especially lower income informal sector) families own an independent home was incorporated in 2008. With an average loan size of INR 4 to 5 lakhs, MHFC serves over 14,500 customers and has a loan book of close to INR 500 cr. with a passionate team of about 200 employees.
“There is a complimentarily of vision, geographical presence and business strengths. The reach and infrastructure of microfinance coupled, credit assessment capabilities of affordable housing finance entity combined with an innovative IT platform will not only benefit our customer segment but also create significant value for all stakeholders,” added Mr. Vineet Chattree, Director Svatantra Microfin Pvt. Ltd. and MFIN. IIFL Corporate Advisory has been a sole advisor for the transaction.
About Svatantra Microfin Private Limited (Svatantra)
Svatantra in collaboration with NPCI (National Payment Corporation of India) has been a pioneer in adopting APBS (Aadhaar Payment Bridge system) for disbursements of loans. Under the leadership of Ms. Ananya Birla, the company has always been on the path of differentiation as a new-age MFI. With a central aim of financial inclusion, Svatantra is the only MFI with 100% cashless disbursements facilitating activation of bank accounts for its clients. The company and its leader Ms. Ananya Birla have been bestowed with many acclaims, some of them to mention – Ms. Birla was invited to participate for Champions of Change initiative by the Hon’ble Prime Minister – Shri Narendra Modi. Ms. Birla was also felicitated by Honourable Chief Minister of Maharashtra – Shri. Devendra Fadnavis for contributions in the microfinance sector. She also has in her kitties’ coveted titles of ‘Leading Woman in Microfinance’ by iiGlobal Business Information Pvt. Ltd and Forbes Asia’s Women to Watch 2016. Industry recognition awarded to the company – Skoch Financial Inclusion and Deepening Award in 2014, Skoch order of merit 2017, and BFSI CTO Summit best technology initiative 2017.
