Sachin Bansal’s Navi Finserv Closes $38 Mn Securitisation Deal With JP Morgan

Fintech unicorn Navi Finserv has marked close of $38 Mn (around INR 318.2 Cr) personal loans securitisation deal with financial and investment banking firm JP Morgan.

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.

The deal will help the Bengaluru-based startup to expand its operations and grow its digital personal loans business.

“This deal serves as a substantial endorsement of the high quality of our loan portfolio and the sustained growth that Navi has been able to achieve in the past few years,” said Sachin Bansal, cofounder, CEO and executive chairman of Navi Finserv.

This comes days after Navi Finserv in May reportedly raised INR 150 Cr via bond issuance from a clutch of investors, including Dadachanji Group chairman Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji. 

Navi Finserv converted into a public entity in March 2022. In the same month, Navi’s parent company, Navi Technologies, filed its DRHP to raise  INR 4,020 Cr through an IPO.

According to the DRHP, Navi Technologies planned to raise INR 3,350 Cr via a fresh issue of equity, and another INR 670 Cr in a pre-IPO round.

However, the company later scrapped its listing plans despite getting SEBI’s nod due to market volatility and the rejection of its banking licence application.

Navi Technologies’ subsidiary Navi Finserv posted a net profit of INR 172 Cr in the financial year 2022-23 (FY23) as against a loss of INR 67 Cr in FY22.

The startup’s operating revenue jumped 2.8X to INR 1,283 Cr in FY23 from INR 457.1 Cr in FY22.