Sachin Bansal invests in a microfinance firm and becomes its CEO

Former CEO and co-founder of the e-commerce marketplace, Sachin Bansal has pumped Rs 740 crore ($104 million) into Chaitanya Rural Intermediation Development Services (CRIDS). Bansal had also invested Rs 25 crore in microfinance firm Chaitanya India Fin Credit (CIFCPL) run by CRIDS, right after his exit from Flipkart.

CRIDS, through its wholly-owned subsidiary Chaitanya India Fin Credit, provides jointly liable group loans, organises financial literacy campaigns in rural communities across Karnataka, Bihar, and Maharashtra. Since its inception in 2009, it has provided microloans worth Rs 625 crore. The NBFC also deals in two-wheeler loans, housing loans, small business loans and education loans in rural parts.

After investing in the firm, Bansal has become the its chief executive while founders Samit Shetty and Anand Rao will continue in their respective roles. There will be however no significant management changes.

Bansal has also been evaluating several deals via the debt route, thus showcasing his deep interest in MBFC firms. His first investment was Rs 500 crore via debt route in NBFC firms Altico Capital and IndoStar Capital in February.

Five months later, he purchased a non-convertible debt paper issued by Piramal Group for Rs 200 crore. In the same month, BACQ was in talks to acquire Essel Mutual Fund, which is owned by the Zee group.

Apart from NBFCs, Bansal has continued his interests on Indian start-ups and has put significant capital into Ather Energy, Bounce, Kissht, boAt, Vogo, and Krazybee.