- The Poster Boy of Indian Startups, Sachin Bansal is again in the news as he has acquired a majority stake in a non-banking financial company (NBFC) Chaitanya India Fin Credit (CIFCPL) which is run by Chaitanya Rural Intermediation Development Services Private Limited (CRIDS)
- It has been providing microloans worth Rs 625 crore since its founding in 2009. Also, the NBFC deals with two-wheeler loans, residential loans, small business loans and education loans in rural areas of the above-mentioned states.
For those who don’t know, CRIDS offers jointly liable group loans through its wholly-owned subsidiary Chaitanya India Fin Credit, organizes financial literacy campaigns across Karnataka, Bihar, and Maharashtra in rural populations.
It has been providing microloans worth Rs 625 crore since its founding in 2009. Also, the NBFC deals with two-wheeler loans, residential loans, small business loans and education loans in rural areas of the above-mentioned states.
Bansal has become the company’s chief executive following the investment, while founders Samit Shetty and Anand Rao will remain in their respective positions.
No important changes in leadership will occur, the firm said.
Previous media reports also stated that BAC Acquisitions (BACQ) reportedly sought to obtain about 75% interest in the microfinance company; however, details of stake acquisition could not be ascertained at the moment.
Meanwhile, through the debt path, Bansal evaluated several deals. His first investment in February in NBFC companies Altico Capital and IndoStar Capital was Rs 500 crore via debt route.
He bought a non-convertible debt paper for Rs 200 crore issued by Piramal Group five months later. In the same month, BACQ was in talks to purchase the Zee group’s owned Essel Mutual Fund.
The experienced entrepreneur continued his bets on Indian startups in addition to NBFCs. He has invested substantial capital in Ather Energy, Bounce, Kissht, boAt, Vogo, and Krazybee since he left Flipkart.
After being transformed as NBFC-MFI in 2009, Chaitanya started its activities rapidly with a friendly objective of assisting the many low-income families who have traditionally been away from the formal banking sector. Today Chaitanya works in 5 states serving more than 3.5 Lakh customers. With the goal of being a Pan India Financial Institution that provides various products that meet the complete spectrum of financial service requirements of rural low-and middle-income people, promoting them to be part of the formal economic sector.
This is so great to see that a man of such business acumen is investing in young Indian startups and helping Indian Startup System grow.
All the Best Mr. Bansal.
