STARTUP-STORIES

Navi Finserv Secures Rs 150 Crore Through NCDs, Raising Questions About IPO Plans

SUMMARY

Navi Finserv, Sachin Bansal's fintech startup, raised Rs 150 crore through NCDs from individual investors including the Dadachanji Group. This follows their earlier plan to raise Rs 600 crore via NCDs, hinting at a shift towards smaller investors.

Navi Finserv was previously approved for an IPO but it didn't go through. Despite this, they are profitable (Rs 172 crore net profit in FY23) and have growing managed assets (Rs 9,788 crore). Their latest funding strategy through NCDs raises questions about their long-term plans for an IPO.

Sachin Bansal's Navi Finserv has raised Rs 150 crore through non-convertible debentures (NCDs) from individual investors. This development comes amidst Navi's previous attempts at securing larger funding and its stalled IPO plans.

Fresh Funds via NCDs: Navi Finserv secured Rs 150 crore through NCDs issued to six individual investors, including members of the Dadachanji Group and the Kapadia family.

Focus on NCDs: This fundraising follows Navi's earlier plan to raise Rs 600 crore through NCDs in February 2024. It also comes after Navi raised around Rs 950 crore via NCDs in previous tranches.

Stalled IPO: Navi had previously filed for an IPO and received approval from SEBI, but the listing did not materialize.

Profitability and Growth: Despite the unfulfilled IPO plans, Navi reported a net profit of Rs 172 crore in FY23, showcasing profitability. The company also boasts a total income of Rs 1,377 crore and managed assets of Rs 9,788 crore.

Future Funding Strategy: Navi's continued reliance on NCDs raises questions about their long-term funding strategy. While the company was reportedly in talks for external funding at a $2 billion valuation, this latest round suggests a shift towards smaller, individual investors.

Navi Finserv's latest fundraising highlights the company's evolving funding strategy. While its profitability and growth trajectory are positive, the stalled IPO and continued focus on NCDs raise questions about its long-term financial plans.