Sachin Bansal-led Navi Technologies has received SEBI’s approval to raise ₹3,350 crore through fresh equity issue in the primary market.
The former chairman and co-founder of Flipkart, Bansal has proposed to use the net IPO proceeds for investment in its subsidiaries, Navi Finserv and Navi General Insurance.
Navi Technologies is a technology-driven financial products and services company. Since the company’s incorporation, it has expanded offerings under the ‘Navi’ brand to include personal loans, home loans, general insurance and mutual funds. It also offers microfinance loans through a wholly-owned subsidiary under the ‘Chaitanya’ brand.
The company offers a comprehensive suite of financial services solutions in a digital-first manner. The personal loan business was launched in April 2020 to extend instant personal loans of up to ₹20 lakh for up to 84 months through an entirely digital Navi App-only process.
The company has disbursed 4.81 lakh personal loans, valued at ₹2,246 crore, as of last December-end. Its personal loans business had an AUM of ₹1,419 crore.
The home loan business, which was launched last February, disbursed 604 home loans across eight cities in India with an average ticket size of ₹39 lakh as of December-end. The AUM of the home loan business was pegged at ₹178 crore as of December-end.
The general insurance business of the company launched with the acquisition of DHFL General Insurance in February 2020. During the nine months ended December, 2021 its gross written premium was ₹67 crore, of which, ₹6 crore was from the retail health insurance segment.
It issued a total of 2.21 lakh insurance policies during that period, of which, 27,800 were retail health insurance policies. Share of retail health insurance policies rose to 15.70 per cent during the quarter ended December 2021 from the 4.14 per cent logged in the June quarter.
The company started its asset management business through the acquisition of Essel AMC in February 2021. Its first passive fund, Navi Nifty 50 Index Fund, launched last July, had an AUM of ₹167 crore as of December-end. Since the launch of the business, it has filed for 17 new passive funds with SEBI.
The company also offers microfinance loans through its subsidiary, Chaitanya India Fin Credit, which was acquired in March 2020. As of last December-end, its microfinance business had a closing AUM of ₹1,809 crore.
Navi Technologies has also applied for a universal banking license with the RBI, which will further widen its financial products and services range.