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 Private equity (PE) investors Advent International and Multiples Private Equity on Monday announced investment of Rs 1,930 crore ($230 million) in Svatantra Microfin Pvt Ltd.

This deal marks the largest investment by private equity investors in the microfinance sector in the country.

The current promoter group at Svatantra Microfin, led by Ananya Birla, will continue to have a significant majority stake, it said in a statement.

"This transformative era for Svatantra, propels us towards our goal of becoming the foremost and most impactful microfinance institution, creating a conducive environment for entrepreneurs who fuel India’s growth story," said Birla, Chairperson of Svatantra.

The investment follows Svatantra’s recent acquisition of Chaitanya India Fin Credit Limited.

Upon completion of the proposed transaction and merger with Chaitanya, the combined entity will be among the largest non-banking microfinance companies in the country.

Svatantra provides affordable financial and non-financial solutions to women entrepreneurs. Svatantra, along with its wholly owned subsidiary, Chaitanya, has a team of more than 17,000 employees and the business serves over 4.2 million customers across more than 20 states.

"We believe the microfinance sector serves as a cornerstone for financial inclusion for women entrepreneurs in rural areas, and Svatantra is uniquely placed to create one of the largest and most resilient microfinance institutions," said Shweta Jalan, Managing Partner, Advent International.

The transaction is subject to receipt of statutory and regulatory approvals, including the approval of the Reserve Bank of India and Competition Commission of India (CCI).