Main Highlights:
- Sachin Bansal’s Navi Technologies, a fintech company that offers consumers insurance and loan products, has filed for a $440 million initial public offering, signaling yet another bold step by the 40-year-old entrepreneur who made his wealth by sparking India’s e-commerce boom.
- According to a draught prospectus filed with the local securities regulator on Saturday, Navi Technologies’ initial public offering would be entirely comprised of new shares, and the business may consider a pre-IPO placement.
- Navi is a lender created in 2018 specializing in digital personal loans, home loans, and credit against the property.
Sachin Bansal’s Navi Technologies, a fintech business that provides clients insurance and lending products, has filed for a $440 million initial public offering, signaling yet another daring move by the 40-year-old entrepreneur who built his fortune igniting India’s e-commerce revolution. According to a draught prospectus submitted with the local securities regulator on Saturday, Navi Technologies’ initial public offering will be entirely made up of new shares, and the company may contemplate a pre-IPO placement.
The IPO comes at a time when technology companies — and the majority of other equities – have taken a beating in recent months. Zomato, Paytm, Nykaa, and PolicyBazaar are among the IT businesses that went public last year and have recently traded at their lowest share prices.
However, for Navi Technologies, which has been considering an initial public offering for over a year, there is an added feeling of urgency in going public. According to two individuals close to the situation, the startup’s most recent attempt to raise capital from SoftBank at a valuation of more than $4 billion fell through owing to the startup’s inability to obtain a bank license.
About Navi
Navi, founded in 2018, is a lender that specializes in digital personal loans, house loans, and credit against the property. Additionally, it offers health insurance and digital asset management, emphasizing passive funds to its consumers. Bansal has supported the firm almost exclusively thus far.
Billionaire Bansal, who co-founded Flipkart over a decade ago and was forced out before Walmart’s acquisition, and Navi have generally avoided the limelight. The draught prospectus provides details about Navi’s numerous businesses and financial health for the first time.
Navi has exerted control over its loan products from sourcing through underwriting and collection through its in-house NBFC (non-bank financial company) arm, AI/ML-based underwriting, and digital-only D2C strategy. The business characterizes itself in the draught prospectus.
Navi stated that it utilizes technology to service clients that have not previously been served. The startup ensures instant loan disbursements, offers low-interest digital home loans, leverages technology to manage fraud and credit default risks, employs data analytics to train its lending algorithms to provide attractive pricing and better loan account management, and leverages both digital and field collection methods to its advantage.
The firm – which had a consolidated profit of $9.2 million on revenue of $17.8 million in fiscal year 21 – claims that its financing and retail health insurance products enable users to sign up in less than 4.5 minutes and 2.5 minutes, respectively. In the 21 months since its debut, Navi’s personal loans company has served over 481,000 customers in 84 percent of Indian ZIP codes, providing them with up to 2 million Indian rupees over an 84-month term. These loans have a ticket size of $665.
As of December 31, 2021, 61.17 percent of health insurance plans issued via the Navi App were approved without human intervention. Additionally, the business designed a chat-based interface to guarantee that clients are treated seamlessly throughout their purchasing process.
They provide health insurance premiums on a monthly installment basis, making their products more appealing and reasonable. In the nine months ended December 31, 2021, our GWP was 667.60 million, of which 63.26 million originated from the commercial health insurance sector. He noted that they issued a total of 220,491 insurance policies for the nine months ending December 31, 2021, of which 27,800 were retail health insurance plans.