Under the co-lending agreement, Navi will originate and process personal loans based on mutually agreed-upon credit parameters and eligibility criteria
Piramal Finance will fund 80% of the loans generated by the partnership, while the rest will come from Navi Finserv, a subsidiary of Navi Technologies
Navi has also launched a co-lending and direct assignment platform ‘Navi Lending Cloud’ to give a seamless digital experience to its partners
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
IPO-bound fintech unicorn Navi Technologies has partnered with Piramal Capital and Housing Finance Ltd to offer digital personal loans.
The partnership would allow the fintech startup to serve 11,000+ pin codes across India. Under the co-lending agreement, Navi will originate and process personal loans based on mutually agreed upon credit parameters and eligibility criteria, the companies said in a statement.
Customers can get digital personal loans of up to INR 20 Lakh with a tenure of up to 72 months via the startup’s app under the partnership. Piramal Finance will fund 80% of the loans generated by the partnership, while the rest will come from Navi Finserv, a subsidiary of Navi Technologies.
“Our partnership with Piramal Finance will give further impetus to scale our lending business with the same superior customer experience of Navi,” Navi Technologies CEO and chairman Sachin Bansal said.
Besides, the fintech startup has also launched a co-lending and direct assignment platform ‘Navi Lending Cloud’ to give a seamless digital experience to its partners, he added. “This will take us one step closer to our mission of making financial services affordable and accessible to 1 Bn Indians,” he said.
Founded in 2018 by Bansal and his former Flipkart colleague Ankit Agarwal, Navi Technologies is a fintech startup which offers several financial solutions like loans, general insurance, mutual funds and microfinance.
The unicorn offers microfinance loans through its step-down subsidiary, Chaitanya India. It applied to the Reserve Bank of India (RBI) for a universal banking licence in late 2020. However, the RBI rejected the application earlier this year.
However, the startup did receive the approval of the Securities and Exchange Board of India (SEBI) for its initial public offer (IPO).
The fintech filed for an INR 3,350 Cr IPO via a fresh issue of shares, with a significant chunk of the amount raised going to its subsidiaries Navi Finserv Private Limited (NFPL) and Navi General Insurance Limited (NGIL).
According to the startup’s draft red herring prospectus (DRHP), it will invest INR 2,370 Cr in NFPL and INR 150 Cr in NGIL, while the rest of the amount will be used for general corporate purposes.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.