Bengaluru: Flipkart cofounder Sachin Bansal has picked up a majority stake in Bengaluru-based microfinance company Chaitanya Rural Intermediation Development Services (CRIDS), in what is probably a stepping stone into the broader financial services space for the internet billionaire.
Bansal has acquired 94% stake, allowing a majority of the existing investors in Chaitanya to exit through the deal. ET first reported the development on April 12.
The nonbanking finance company (NBFC), eyeing fresh funding, was reportedly in talks with Bansal for a deal over the last few months. “This acquisition is our entry into financial services,” Bansal said in a note to the press.
Bansal, who will invest Rs 739 crore in the NBFC, did not specify how much of that would be primary infusion of capital.
The Flipkart cofounder will also take over as its chief executive officer.
Chaitanya confirmed that founders Samit Shetty and Anand Rao would continue to operate in their respective roles to manage existing business segments, thereby retaining their current roles and responsibilities.
Bansal sold his entire 5.5% stake in homegrown ecommerce company Flipkart to US retail behemoth Walmart in 2018.
After his exit, he cofounded BACQ along with Bank of America top executive Ankit Agarwal.
Regarding the funding route for the acquisition, Bansal said he had invested his own money.
ET had reported on February 21 that Bansal was keen to apply for a private banking licence and had met senior officials of the Reserve Bank of India.
The acquisition of Chaitanya could be a step towards that, industry sources said.
Chaitanya India Fin Credit, its lending arm, was founded in 2009 and operates as an NBFCMFI across five states through 195 branches, and a customer base of 350,000.
It reported total revenue of Rs 110.5 crore, a jump of 45% from Rs 76.2 crore, according to its 2018-19 annual report.
After reporting net loss of Rs 8 lakh in financial year 2018, it posted net profit of Rs 7.2 crore last year.