Sachin Bansal invested Rs. 740 cr. In Micro-Finance Company CRIDS

by aditi verma 2019-09-26 07:05:00

Sachin Bansal

Sachin Bansal, the co-founder of e-commerce giant Flipkart who had exited the firm last year with a billion dollars in his account, is ready to jump into the entrepreneurship line again. The poster boy of startups in India has invested Rs. 740 crore that amounts to around $104 million, in a Bengaluru based company.

CRIDS (Chaitanya Rural Intermediation Development Services Private Limited) is a non-banking financial company. The company has its headquarters in Bengaluru, Karnataka. Sachin Bansal acquired a major portion of the company and will work as the CEO of CRID. The company was co-founded in 2012 by Samit Shetty and Anand Rao with a purpose to serve the financial needs of the rural areas of our country. The co-founders will continue with their roles in the company and there won't be any major changes in the management of the company.

The company's role is to provide loans to the rural population and they also organize campaigns of Financial literacy in the rural areas of various states in India including Karnataka, Bihar, Jharkhand, Maharashtra, and Uttar Pradesh. The major target market of CRIDS is the low and middle-income groups. CRID offers group loans that are jointly liable by all its members through its subsidiary Chaitanya India Fin Credit. The company offers microloans such as two-wheeler loans, residential loans, small business loans and education loans in the rural sector of the states mentioned above with Karnataka being its biggest market.

Sachin Bansal, the New CEO of CRIDS, said: "This acquisition is our entry into financial services." He added, "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. I look forward to working closely with Samit and Anand and building further on the solid work they have done."

Samit Shetty, co-founder of CRIDS said in a statement, "Sachin brings with him the ability to build huge scale grounds up to CRIDS,” He added, “We are looking forward to benefiting from his insights and experience with technology, and how that can be leveraged for improving access to financial services, financial inclusion and making our business better, more sustainable and customer-centric.”

The 37-year-old Billionaire left Flipkart when the multi-national Corporation Walmart bought a major stake (77 percent) in Flipkart for $16 billion in the year 2018. This year, Sachin Bansal invested around Rs. 650 crores in Ola Cabs as an investor. He had always been interested in the financial sector after he exited Flipkart. Other than investing in NBFCs, he has also been investing in Indian Startups including Ather Energy, Bounce, Kissht, boAt, Vogo, and Krazybee.

It is said that CRIDS is not among the top micro-finance companies in India. There are many players in this segment. But, with the entry of Bansal and a whopping Rs. 7000 crores at his disposal, CRIDS could turn into one of the top companies in the rural credit sector in India. The company has more than 4 lakh customers from micro-finance loans. The company aims to spread its operations in the northern states of India.

Also read:- Flipkart adds 50,000 jobs right before the big sale of the holiday season

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