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Bansal’s Navi to file for Rs 4,000-crore IPO this week

Navi Technologies, a financial services business established by Flipkart co-founder Sachin Bansal, plans an IPO to garner Rs 4,000 crore (IPO).

According to reports, the firm will put forward its Draft Red Herring Prospectus (DRHP) with market regulator SEBI, later this week.

About Navi Technology:- 

In 2018, Sachin Bansal and Ankit Agarwal created Navi, an Indian financial services firm. Digital personal loans, house loans, mutual funds, health insurance, and micro-loans are accessible through Navi technology. Bengaluru is the company’s headquarters.

Sachin Bansal's Navi Technologies converts into public firm ahead of IPO -  TechStory

 

After leaving Flipkart in December 2018, Sachin Bansal and an IIT-Delhi classmate created BACQ Acquisitions Private Limited, eventually renamed Navi Technologies Private Limited.

Since its inception, it has acquired businesses to expand its product and service offerings.

To accelerate product development, it also bought MavenHive, a consulting firm, in 2019.

In keeping with its growth, approximately 50 engineers were employed to hire 400 more in 2021. It has bought a new office space in Bengaluru.

The parent company is Navi Technologies, and the subsidiaries are organized as follows:

Decoding Sachin Bansal's Navi's FY20 Financial Performance

  • Personal and Home Loans from Navi Finserv;
  • Navi Asset Management Company;
  • Navi General Insurance – Health and other types of insurance;
  • Chaitanya Micro Finance is a microfinance and lending company based in India.

The news comes less than a month after it became publicly traded, accelerating its plans to float on the Indian stock. The Bengaluru-based company provide personal and home loans, general insurance, and mutual funds through its digital platform. To stay ahead of the competition, the tech-driven company has released many innovative products. For example, last year, the company introduced an option that allowed customers to get health insurance EMI rather than paying an annual fee upfront.

The Navi Nifty 50 Index Fund, the company’s first mutual fund, was launched in June 2021. It has submitted the preliminary documentation to SEBI in December of the same year, in order to launch its blockchain index funds. To attract more consumers, it has launched exchange-traded funds with the lowest pricing in the Mutual Funds market. The fintech sector is seeking a universal banking license from the Reserve Bank of India.

On the other hand, its made a profit of Rs. 71 crore in FY21. This is a very good growth above the Rs. 8 crore loss in FY20. Furthermore, the startup’s income increased by 252 percent from Rs. 221 crore in FY20 to Rs. 780 crore in FY21. Policybazaar, Acko, and Digit are the insurance companies that compete against it. The mutual fund business competes with Zerodha, Groww, Paytm Money, and Upstox.

 

IPO details of Navi technology:-

Navi Technologies To Launch Rs 4,000 Crore IPO. Here Is What We Know So Far

Bansal is not decreasing his interest in Navi, which he has spent over Rs 4,000 crore in, so far. Sources stated that the firm is going to submit its Draft Red Herring Prospectus (DRHP) this week and that the Initial Public Offering (IPO) will begin in June. There will be no offer-for-sale element to the public offering since it will be a new issuance.

According to persons familiar with the situation, ICICI Securities, BofA Securities, and Axis Capital have been recruited to oversee the company’s public offering.

Navi Technologies is a tech-driven financial products and services firm, co-founded and pushed by serial entrepreneur and Flipkart Co-Founder Binny Bansal. According to its website, Navi is a digital lending software that provide loans up to Rs. 20 lakh in an entirely paperless plan of action. At the moment, it has a lending book of about Rs. 3,500 crore, which includes personal loans, housing loans, and microfinance loans.

In 2019, Navi acquired Chaitanya India Fin Credit for Rs. 739 crore to enter the microfinance market. Chaitanya has also sought for a universal banking license with the Reserve Bank of India (RBI).

Navi plans to generate Rs. 4,000 crore through the IPO, aiming to collect at least double that much, through public debt later this year. The funds will go with regard to the company’s ambitious development plans, including building a loan book of Rs. 20,000 crore in the next two years. The corporation, according to sources, aims to borrow up to Rs. 15,000 crore in debt from the public markets over the next two years.

To expand its lending business, which now accounts for 90% of Navi’s income, the company will need to raise some extra money from the Indian markets. Navi may benefit from the IPO since it will encourage creditors trust by making its performance and KPIs public.

Navi has almost three million monthly active users and has provided Rs. 500 crore in personal loans in February. Another source estimated that the monthly distribution would be about Rs 900-1,000 crore if microfinance and house loans were included.

Sachin Bansal's Navi Technologies buys software consulting firm MavenHive |  Business Standard News

Summary 

  • The company plans to go public in June 2022.
  • Bansal will retain controlling ownership of the company and has put Rs. 4,000 crore of his own money.
  • Navi has been growing in the lending and microfinance sector. In 2020, the company’s microfinance subsidiary, Chaitanya Credit, sought a universal bank license.
  • In addition to the IPO, Navi plans to raise Rs. 8,000 crore through public debt.
  • Over the next two years, up to 2024, the company intends to lend a total of Rs. 20,000 crore.
  • Three million people use Navi every single month. In February, it disbursed Rs. 500 crore in loans.
  • Abhijit Bose, the CEO of WhatsApp India, Usha Narayanan, a former PwC Partner, and Anand Sinha, the former RBI DG, are among the prominent members of Navi’s Board of Directors.
  • LIC, Delhivery, and PharmEasy, are aiming to go public shortly. Due to the war between Russia and Ukraine, preparations have been delayed.
  • Russia’s invasion of Ukraine has undermined the value of several new firms. Nykaa, Zomato, and Paytm have all just hit new lows. As a result, the launch is at a sensitive point.

 

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