May 23, 2022

Navi Technologies Sachin Bansala, a fintech startup that provides loans and insurance services to clients, has filed for a $440 million IPO as a 40-year-old entrepreneur who started his career by restarting the e-commerce wave in the country. earned money. like.

Navi Technologies’ first public offering will be brand new shares, and the startup may consider a pre-IPO offering, according to a draft prospectus filed with the local regulator on Saturday.

The IPO comes at a time when tech stocks or most other stocks have been declining in recent months. Tech startups including Zomato, Paytm, Nykaa and PolicyBazaar, which went public last year, are trading at their lowest prices in weeks.

But Navi Technologies, which has been eyeing an IPO for over a year, urgently needs to take the company public. The startup’s latest attempt to raise more than $4 billion in funding from SoftBank and other investors failed after it failed to secure a license to become a bank, two people familiar with the matter said.

Founded in 2018, Navi Lending Space offers digital personal loans, home loans, and real estate loans. It also offers clients health insurance and digital asset management with a focus on passive funds.

Billionaire Bansal, who co-founded Flipkart over a decade ago and was fired from the company before it was sold to Walmart, and Navi have largely stayed out of the spotlight. A draft prospectus (PDF) provides first-hand information about the various Navi businesses and their financial condition.

“With its in-house NBFC (non-bank lender), AI/ML-based underwriting, and D2C digital approach, Navi is able to control its loan products from search, underwriting to collection, and a seamless customer experience.” The startup describes itself in a draft prospectus.

Navi says it uses technology to serve customers that would otherwise not be served. The startup offers “instant loan disbursement, offers digital home loans at low interest rates, uses technology to manage fraud and default risk, manages its loans to provide attractive prices and improve credit account management.” digital and field collection to their advantage. ,

Value preposition Navi, in his own words

The startup, which reported $9.2 million in consolidated earnings in fiscal year 21 on $17.8 million in revenue, says its personal loans and private health insurance help customers settle in less than 4.5 and 2 minutes, respectively. . 5 minutes to register.

In the 21 months since launching the personal loan business, Navi has served over 481,000 customers in 84% of India’s postcodes and has covered over INR 2 million for up to 84 months. The ticket size for these credits is $665.

“As of December 31, 2021, 61.17% of our health insurance sales were approved on the Navi app without any humanitarian assistance. In addition, we have developed a proprietary chat-based interface that provides a seamless service to our customers throughout their journey to shopping,” the startup said in a statement.

“We offer health insurance premiums through EMI, where the client can pay a fixed monthly fee for their policy, making our products attractive and affordable. For the nine months ended 31 December 2021, our GWP was £667.60m, of which £63.26m was in private health insurance. In the nine months ended December 31, 2021, we took out a total of 220,491 insurance policies, of which 27,800 were private health insurance policies.

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