Denmark's Maj Invest bets on second business correspondent firm in India.

With regional offices in India and Peru, Maj manages assets worth $12 billion, of which around $1 billion are in private equity commitments. Maj Invest Financial Inclusion funds are sector-focused, closed-end private equity funds investing growth capital directly into financial institutions across Asia, Latin America and Africa. With the recent launch of its third fund, Maj aims to continue delivering attractive financial returns along with a positive environmental, social, and governance impact. 

The details of the deal are

Sector: Microfinance

Announcement Date: 28th July 2020

Completion Date: 23rd August 2020

Name of the client: Danish Microfinance Partners K/S

Acquirer Name and Description:  Maj Invest | Denmark | Investor 

Maj Invest is a leading Danish asset management company managing assets for primarily institutional clients

Target Name and Description: Save Solutions Private Limited | India 

Save Solutions Private Limited is engaged in business correspondence services and its group entities are in the business of non-banking financial services.

Deal Description: Maj Invest acquired a 19.7% stake in Save Solutions Private Limited via primary subscription and secondary purchase of shares.

Total Consideration: USD 17.56 Millions

Team Members: The core transaction team of comprised Kartick Maheshwari (Partner), Aashutosh Sampat (Partner), Radhika Agarwal (Principal Associate), Vidushi Gupta (Principal Associate), Soumil Garg  (Senior Associate) and Vaishali Nayar (Associate) with assistance from Parivesh Agrawal (Associate) and Reshma Abraham (Associate) on due diligence aspects.

Role of Firm: Khaitan & Co represented the client on its investment in Save Solutions Private Limited and its subsidiaries, via: (i) a primary subscription to equity shares of the company; and (ii) secondary purchase of shares from promoters of the company, for a combined stake of 19.7%.

Other legal advisors: IC Universal Legal (Kavitha Vijay, Senior Partner)