Sachin Bansal's Navi In Talks To Raise Funds At $2 Bn Valuation

SUMMARY

Bansal is said to be in talks with investors to raise between $200-$400 Mn

If the funding talks pan out, this will be Navi’s first external investment since its inception in 2018

Terms of the investment and Bansal's stance on external funding could change as negotiations make headway

Flipkart cofounder Sachin Bansal is said to be in talks to raise funds for Navi Technologies at a valuation of $2 Bn. According to a Techcrunch report, Bansal is in talks with investors to raise between $200-$400 Mn.

If the talks pan out, this will be Navi’s first external investment since its inception in 2018. However, a final offer has yet to take shape. As per the report, the terms of the investment and Bansal’s stance on external funding could change as negotiations make headway.

“As a company policy, we refrain from commenting on speculative discussions or rumours about our business strategies,” a Navi spokesperson said.

Last year, Ananya Birla-led Svatantra Microfin Pvt Ltd acquired Sachin Bansal-backed fintech startup Navi’s subsidiary Chaitanya India Fin Credit Pvt Ltd for INR 1,479 Cr. Navi Technologies acquired Chaitanya for INR 150 Cr in 2019 and infused around INR 900 Cr in the microfinance institution (MFI).

Last year, Navi Technologies forayed into the digital payments space with the launch of Navi UPI.

Navi filed its draft red herring prospectus (DRHP) in 2022 for a $440 Mn IPO. Despite bagging SEBI’s nod, the company abandoned its listing plans due to market volatility and the rejection of its banking licence application.

Navi Technologies’ subsidiary Navi Finserv reported a net profit of INR 172 Cr in the financial year 2022-23 (FY23) as against a loss of INR 67 Cr a fiscal ago. Navi Finserv posted a net profit of INR 97.5 Cr in FY21.

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