IPO-Bound Navi Finserv’s FY25 Profit Tanks 67% To INR 222 Cr

Ahead of its stock market debut in the financial year 2025-26 (FY26), Sachin Bansal-led Navi Finserv has seen a steep decline in its FY25 net profit.

The fintech major’s profit after tax (PAT) declined 67% to INR 221.9 Cr during the year from INR 668.8 Cr in FY24.

However, the startup’s top line remained robust. Navi’s operating revenue stood at INR 2,271.2 Cr, up 19% compared to INR 1,906.2 Cr posted in FY24. 

The key reason behind the significant dip in Navi’s profits is an exceptional fall in the other income, which stood at a mere INR 18.8 Cr in FY25 versus INR 707.9 Cr in FY24.

Consequently, Navi’s total income in FY25 declined 12% to INR 2,289.9 Cr from INR 2,614.2 Cr in the year-ago fiscal. 

Notably, Navi’s other income in FY24 received a boost on the back of its divestment in micro-credit financing company Chaitanya India Fin Credit (CIFCPL). In August 2023, Navi sold its stake in the subsidiary to NBFC Svatantra Microfin for INR 1,166.9 Cr.

“The said transaction was completed on November 23, 2023, resulting in a gain of INR 704.1 Cr. CIFCPL ceases to be a subsidiary of the Company with effect from November 23, 2023,” Navi’s filings read. 

Founded by Bansal and Ankit Agarwal in 2018, Navi operates a fintech superapp that offers an array of financial services, including UPI payments, investments, loans and insurance. 

The startup has raised over $677 Mn across seven funding rounds to date from investors like Gaja Capital, Narotam Sekhsaria family office’s Narayanan Venkitraman, among others. 

Where Did Navi Spend In FY25? 

Along with its top line, Navi’s expenses have also increased. In FY25, Navi spent INR 1,988.9 Cr, up 14% from INR 1,750.4 Cr in FY24. 

Here is a quick snapshot of where the fintech burned the most: 

Finance Cost: The startup’s finance cost rose about 21% YoY to INR 796.8 Cr in FY25.

Impairment On Financial Instruments: The startup marked INR 578.8 Cr as losses on its assets last fiscal. This was up 17% from the INR 495.7 Cr spent a year ago. 

Employee Cost: Navi’s employee costs rose 15% to INR 172.3 Cr from INR 149.9 Cr in FY24. 

A Snapshot Of Navi’s FY25 

The fintech’s journey in FY25 was quite eventful. In October 2024, Navi overtook CRED to become the fourth-largest UPI player in the Indian ecosystem. The startup has retained the position since then, trailing PhonePe, Google Pay and Paytm in the UPI ecosystem. 

Its transaction volumes grew from INR 8,806 Cr in November 2024 to INR 18,841 Cr in April 2025, while its transaction count more than doubled from 15.3 Cr to 34.4 Cr in the same period. 

However, the startup faced a setback on the loans front in the same month. The RBI barred it from sanctioning and disbursing loans as it was charging excessive interest rates and non-compliance with its regulations. 

The curbs were lifted on December 2. As a result, the startup’s loans under management slipped to INR 7,975.6 Cr from INR 8,036.7 Cr in FY24. 

Towards the end of the fiscal year, in February this year, Bansal announced that he was stepping down as the CEO of Navi. 

While Bansal continues to be the chairman of the startup, the day-to-day responsibilities of running the show as Navi’s CEO have now been transferred to two executives — Rajiv Naresh for Navi Technologies and Abhishek Dwivedi for Navi Finserv. 

As of now, Navi plans to list on indian bourses towards the end of FY26. Notably, this will not be Navi’s first attempt. In 2022, the fintech filed its DRHP with SEBI for an INR 3,350 Cr public issue, but later deferred its listing plan due to market volatility