Navi Finserv, the fintech unicorn led by Sachin Bansal, has successfully raised INR 150 crore through a bond issuance, following its earlier announcement to raise up to INR 600 crore via Non-Convertible Debentures (NCDs). This fundraising effort involved six individual investors.
Details of the Bond Issuance
According to the company’s filing with the Registrar of Companies (RoC), reviewed by ET, the finance committee of the board of directors approved the allotment of NCDs with a face value of INR 1,00,000 each, amounting to a total of INR 150 crore through private placement.
Key Investors
The major investors in this round include:
- Kairus Shavak Dadachanji: Chairman of the Dadachanji Group
- Pervin Kairus Dadachanji
- Rishad Kairus Dadachanji
Together, these investors contributed INR 110 crore. Additionally, individual investors Rohit Kapadia, Sandhya Kapadia, and Yash Kapadia invested INR 40 crore.
Purpose and History of Fundraising
NCDs are long-term, fixed-income instruments that enable large companies to raise capital from the public. Navi Finserv’s recent bond issuance marks the continuation of its fundraising journey, which began with the launch of its third public debt issue on February 26, 2024. This followed the successful raising of over INR 950 crore through its previous two public issuances.
Previous Issuances
The company completed its maiden Public Issues I and II of secured, rated, listed, and redeemable NCDs under the SEBI NCS Regulations, raising approximately INR 495 crore in FY 2023 and INR 481 crore in FY 2024.
Company Background
Founded in 2012 by Sachin Bansal and Ankit Agarwal, Navi Finserv focuses on providing a variety of loan products, including personal, vehicle, and home loans. The company, which holds an NBFC license, offers digital lending products for personal and housing finance.
Navi Finserv was converted into a public company in March 2022. In the same month, its parent company, Navi Technologies, filed its DRHP to raise INR 3,350 crore through an IPO. In September 2022, Navi Technologies received approval from the Securities and Exchange Board of India (SEBI).
Upcoming IPO
Navi Finserv is preparing for its public offering, planning to raise INR 4,020 crore through its IPO and Pre-IPO placement. This is expected to hit the market later this year, with proceeds aimed at funding growth initiatives and enhancing brand visibility and credibility.
Financial Performance
The startup reported a net profit of INR 172 crore in the financial year 2022-23 (FY23), a significant turnaround from a loss of INR 67 crore in the previous fiscal year.
Market Impact and Future Plans
Fintech companies have transformed the lending landscape in India 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 billion, 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, Navi Technologies has focused on lending since its inception. It has since diversified into other BFSI segments, including insurance, mutual funds, and wealth management. However, lending remains the core business of the group.
