IFC To Invest $30 Mn In Sachin Bansal’s Navi At $650 Mn Valuation

The International Finance Corporation (IFC) is looking to invest $30 Mn for a 4.5% stake in Sachin Bansal’s Navi Technologies. According to an IFC disclosure notice, the transaction values the Flipkart cofounder’s new venture at around $650 Mn (INR 2100 Cr).

The development comes at a time when Navi is in the process of acquiring a 100% stake in Chaitanya India Fin Credit (CIFCPL) from Sachin Bansal and other investors. Notably, Bansal is already the majority stakeholder of CIFCPL, which was earlier known as Chaitanya Rural Intermediation Development Services (CRIDS). He had acquired the company for INR 739 Cr ($104 Mn).

CIFCPL, which was acquired by Bansal, in September 2019, provides access to credit to the underbanked population in rural areas. The fintech startup has recently submitted an application to the Reserve Bank of India (RBI) for a universal bank license. The license will help the company increase financial inclusion by making banking simpler, accessible and affordable for consumers with a technology-driven approach.

Though the majority of CIFCPL’s business is in microfinance, the company is planning to bridge the credit gap for the retail and MSME sector by developing industry-leading technology and global best practices as a mainstay with the license application.

As of now, Chaitanya has more than 40 branches in five states including Karnataka, Bihar, Maharashtra, Rajasthan and Jharkhand. “Building a universal bank is a reflection of our commitment to provide financial services to those who need them most,” said Bansal.

Navi’s Acquisition Spree

Navi, which was previously known as BAC Acquisitions, has also acquired DHFL General Insurance, Essel Mutual Funds and consulting firm MavenHive.

The Mumbai-based insurance company DHFL General Insurance from Kapil Wadhawan-led financial services group Wadhawan Group Capital (WGC) was acquired by Navi for INR 100 Cr ($14 Mn). DHFL is a 100% fully owned entity of WGC.

Founded in 1984, DHFL has been known for offering affordable housing finance to the middle and lower-income category.

In December 2019, Navi acquired Bengaluru-based technology consulting firm MavenHive. Founded in 2012 by Bhavin Javia and Anandha Krishnan, MavenHive is a tech firm that specialises in end-to-end product development and training. Prior to this, Navi, in October 2019, had acquired Essel Mutual Funds to venture into the mutual fund space.