Flipkart Co-founder Sachin Bansal Acquires Chaitanya Rural
Bansal will invest Rs 739 crore (about $104 million) in Chaitanya Rural and take charge as its CEO.
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Sachin Bansal, Flipkart Co-founder, has overtaken Chaitanya Rural Intermediation Development Services, striking his biggest deal after quitting the e-commerce company last year.
Bansal will invest Rs 739 crore (about $104 million) in Chaitanya Rural and take charge as its CEO, the non-banking financial company, he said in a statement.
Company co-founders Anand Rao and Samit Shetty will continue to help grow the business and there will be no significant change in the management, the statement said.
“This acquisition is our entry into the financial services,” Bansal said.
Bansal had left Flipkart after selling his stake to Walmart Inc. for more than $1 billion in May 2018. Since then, he has made debt investments in several companies, mainly in the financial services and fintech segments.
In July, Bansal made a debt investment of Rs 50 crore (around $7.3 million) in consumer lending startup named Kissht. That month, he also made a similar investment in the Non-Banking Financial Company arm of a financial technology startup.
According to a February report by Mint, he has also invested Rs 250 crore each via debt in IndoStar Capital Finance and Altico Capital India.
Chaitanya Rural was founded in 2012 and operates in five states – Bihar, Jharkhand, Maharashtra, Karnataka and Uttar Pradesh.
According to its website, the company aims to provide financial services to under-banked sections of the Indian population.
The NBFC’s primary business is microfinance but it also provides loans for two-wheelers, housing, small business and education.
“Samit and Anand have built a great company that provides much needed financial access to people who don’t have access to other formal finance,” Bansal said.
Rao and Shetty said, “Bansal taking over as CEO would help the company understand and leverage the technology behind improving access to financial services and financial inclusion.”