Navi Closes $24.5 Mn Loan Securitisation Deal With Goldman Sachs

SUMMARY

The fintech unicorn’s new loan securitisation deal is backed by a pool of unsecured personal loans, originated and serviced by Navi Finserv

Navi Finserv, previously, marked close of $38 Mn (around INR 318.2 Cr) personal loans securitisation deal with financial and investment banking firm JP Morgan, in July

The fintech startup Navi Technologies’ subsidiary Navi Finserv’s consolidated operating revenue stood at INR 1,906.2 Cr in the financial year 2023-24 (FY24)

Sachin Bansal’s fintech unicorn Navi Finserv has marked close of a $24.5 Mn (around INR 206 Cr) business loan securitisation deal with Goldman Sachs (India) Finance Pvt Ltd.

The company said in a statement that the securitisation deal is backed by a pool of unsecured personal loans, originated and serviced by Navi Finserv.

For the uninitiated, securitisation is the process of converting an asset – in this case, personal loans – into marketable securities, typically for the purpose of raising capital by selling it to other investors.

“This transaction with Goldman Sachs will fuel Navi Finserv’s long-term mission to simplify and enable access to finance for a billion people. Navi Finserv continues to scale its operations with high-quality underwriting, to help bring more people into the formal financial system by offering them access to seamless credit and delivering exceptional customer experience,” a Navi Finserv spokesperson said.

Established in 2012 by Ankit Agarwal and Sachin Bansal, Navi Finserv provides various kinds of loans, including personal, vehicle, and home loans. A majority of its revenue comes from interest income on loans, investments, and deposits with banks.

The lending service provider, previously, marked close of $38 Mn (around INR 318.2 Cr) personal loans securitisation deal with financial and investment banking firm JP Morgan, in July.

On the other hand, Goldman Sachs, also made a similar securitisation deal with lending tech startup Aye Finance of INR 212 Cr (over $25 Mn), in late August, to fuel expansion of the company’s lending operations to micro enterprises across the country.

This new development comes weeks after the company reported its financial results for financial year 2023-24 (FY24).

Navi Technologies’ subsidiary Navi Finserv’s consolidated operating revenue stood at INR 1,906.2 Cr in FY24 and excluding the revenue of Chaitanya India in FY23, Navi Finserv’s operating revenue rose about 48% from INR 1,283 Cr.

Meanwhile, following the sale of the subsidiary, the consolidated profit after tax (PAT) from continued operations slipped 56% year-on-year (YoY) to INR 115.6 Cr in FY24.