Flipkart founder’s Navi files for $440 million IPO – TechCrunch

Sachin Bansal’s Navi Technologies, a fintech startup that lends to customers and offers them insurance, has filed for a $440 million IPO as the 40-year-old entrepreneur made his money from e-commerce -Wave to start again in the country a bold choice.

Navi Technologies’ IPO will consist entirely of new shares, and the startup may consider a pre-IPO placement, according to its draft prospectus filed with local regulators on Saturday.

The IPO comes at a time when tech stocks — or most others — have plummeted in recent months. All of the tech startups that went public last year, including Zomato, Paytm, Nykaa and PolicyBazaar, have traded at their lowest share prices over the past few weeks.

But for Navi Technologies, which has been eyeing an IPO for more than a year, there’s also a sense of urgency to take the company public. The startup’s recent attempt to raise money valued at over $4 billion from SoftBank and other investors fell through after it was unable to obtain a license as a bank, according to two people familiar with the matter.

Founded in 2018, Navi offers digital personal loans, home loans and real estate loans in the credit space. It also offers clients health insurance and digital wealth management with a passive fund focus.

Billionaire Bansal, who co-founded Flipkart over a decade ago and was forced out of the company before selling it to Walmart, and Navi have largely stayed out of the limelight. the Prospectus Draft (PDF) offers color for the first time on Navi’s various businesses and its financial health.

“With its in-house NBFC (Non-Banking Lender) arm, AI/ML-based underwriting and purely digital D2C approach, Navi was able to exercise control over its lending products from sourcing to underwriting to collections and to offer a smooth process experience for customers,” the startup describes in the draft brochure.

Navi says it’s using technology to serve customers who haven’t been served otherwise. The startup ensures “immediate loan disbursements, offers digital home loans at low interest rates, uses technology to manage fraud and credit risk, uses data analytics to train its lending algorithms to offer attractive pricing and better credit account management, both digital and digital also to be active field collections to his advantage.”

Navis value preposition in own words

The startup – which reported consolidated earnings of $9.2 million on sales of $17.8 million in FY21 – says its personal loan and retail health insurance products are helping customers get started in less than 4 .5 minutes or 2.5 minutes to register.

In 21 months since its launch, Navi’s personal loan business has served over 481,000 customers in 84% of India’s postcodes, granting them 2 million Indian rupees with terms of up to 84 months. The ticket size of these loans is $665.

“As of December 31, 2021, 61.17% of our health insurance policies sold have been approved without human assistance in the Navi app. In addition, we have developed our chat-based interface, which ensures our customers are served seamlessly throughout their buying journey,” the startup adds.

“We offer health insurance premiums through EMIs, where a customer can pay a fixed amount for their policy each month, which has made our products attractive and affordable. For the nine months ended December 31, 2021, our GWP was ₹667.60 million, of which ₹63.26 million was from the personal health insurance segment. In the nine months ended December 31, 2021, we had issued a total of 220,491 insurance policies, of which 27,800 were personal health insurance policies.”

Flipkart founder’s Navi files for $440 million IPO – TechCrunch Source link Flipkart founder’s Navi files for $440 million IPO – TechCrunch

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