Flipkart co-founder Sachin Bansal is reportedly planning to invest funds to acquire majority stake in a Bengaluru-based microfinance firm. The firm has been identified as Chaitanya India Fin Credit (CIFCPL), according to sources familiar with the matter. Sources claim that Bansal is planning to acquire 75% stake in CIFCPL and talks between the two parties have reached the final stage.
However, the more important news that has sent the markets buzzing is that this investment may result in Bansal taking up executive post in the company. If there is any truth in the report then this will mark the end of Bansal’s hibernation Period. Bansal has been enjoying sabbatical ever selling his minority stake in Flipkart to Walmart last year. The stake sale made the Flipkart-cofounder an overnight internet billionaire and propelled him to chase lucrative investment in the startup world.
Earlier this year, he invested whopping $92 Mn in India’s home grown ride hailing company Ola. The investment was a landmark deal as it was the largest investment by a single individual in an Indian startup.
Bansal’s investment in CIFCPL is likely to be routed through his holding company BACQ; a company he co-founded with his friend and former Bank of America banker Ankit Agarwal. BACQ’s growing investment in NBFC clearly highlights Bansal’s strong interest in the financial sector. BACQ has infused Rs 250 crore each as debt in two NBFC companies Altico Capital and Indostar Capital.
CIFCPL is been doing business in Microfinance space since 2009. As per reports, its loan book is worth around Rs 625 crore and is mainly present in Karnataka, Maharashtra and Bihar. In the event of Bansal coming on the board, the acquisition will need to go through regulatory compliance and this may take close to six months.