Sachin Bansal’s Navi Finserv Bags INR 150 Cr Via Bond Issuance

Months after Navi Finserv announced plans to raise up to INR 600 Cr through the issuance of Non-Convertible Debentures (NCDs), the Sachin Bansal-led fintech unicorn has now reportedly raised INR 150 Cr via bond issuance from six individual investors.

As per the company’s filing with the Registrar of Companies (RoC) reviewed by ET, the finance committee of the board of directors of the company has approved the allotment of NCDs with a face value of INR 1,00,000 each, totalling INR 150 Cr through private placement.

Among the investors are Dadachanji Group chairman Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji, who have invested INR 110 Cr. 

Additionally, individual investors Rohit Kapadia, Sandhya Kapadia and Yash Kapadia have invested INR 40 Cr. 

NCDs are fixed-income long-term instruments that allow large companies to raise funds from the public.

Bansal announced the launch of Navi Finserv’s third public debt issue on February 26, 2024, following the successful cumulative raising of over INR 950 crore in the previous two issuances.

The company completed its maiden Public Issues I and II of secured, rated, listed, and redeemable non-convertible debentures under the SEBI NCS Regulations, raising approximately INR 495 Cr in FY 2023 and INR 481 Cr in FY 2024.

IPO-bound Navi Finserv, cofounded by Bansal and Ankit Agarwal, focuses on loan products such as personal, vehicle, and home loans. Founded in 2012, the subsidiary holds an NBFC license and offers digital lending products for personal and housing finance.

Navi Finserv was converted to a public company in March 2022. In the same month, Navi’s parent company, Navi Technologies, filed its DRHP to raise INR 3,350 Cr through an IPO. In September 2022, Navi Technologies received approval from the Securities and Exchange Board of India (SEBI). 

However, its subsidiary is yet to launch its public offering. Navi now plans to raise INR 4,020 Cr through its IPO and Pre-IPO placement, expected to hit the market later this year. The proceeds will be used to fund growth initiatives and enhance the brand’s visibility and credibility in the public domain.

Besides, the startup reported a net profit of INR 172 Cr in the financial year 2022-23 (FY23) as against a loss of INR 67 Cr in the prior fiscal year. 

Fintech firms have revolutionised lending to meet consumer financial needs. From FY 2016 to 2021, NBFC retail lending AUM in India grew at a CAGR of 25% to around $100 Bn, with personal loans showing a 27% CAGR as a major contributor.

Unlike other fintech startups such as Paytm, BharatPe, Razorpay, and PhonePe, which began as payment platforms and later expanded into lending to achieve profitability, Navi Technologies has focused on lending since its inception. It later diversified into other BFSI segments, including insurance, mutual funds, and wealth management. Nevertheless, lending remains the group’s core business.