Why did investors choose to invest in Navi?
RBI imposed a regulatory pause on Navi it still kept striving and immediately took corrective measures to start its business. In 2023 alone, the fintech secured ₹950 crore through Non-Convertible Debentures (NCDs), keeping the momentum going and continuing to attract new funding. The company experienced a 37% revenue jump from ₹1,667 crore in FY23 to ₹2,290 crore in FY2024, almost 17 times the revenue year on year. It’s the company’s solid financials that build confidence and keep drawing in investors. Navi needs investment to further boost its business.
Why did Navi choose debt financing over equity?
Debt financing means borrowing money, whereas equity funding involves selling ownership of the company. With the robust profit gained, Bansal is confident about paying the debt instead of the unnecessary dilution of the company. This investment is more about creating partnerships than merely infusing money. Leveraging money and great networking are the key features to facilitate business growth.
Where will the ₹170 crore be utilized?
1. Initial preparation for an IPO listing: To scale aggressively, Bansal emphasized at the Startup Mahakumbh that “we are at a place where we can use more capital, and I think public markets are the best source of capital.”
2. Including strong networking and updated AI technology: “As a tech-driven financial products and services company, we think our digital lending process is one of the key differentiators driving business growth,” Bansal clarified. While we continue to expand our reach throughout India and venture into new product lines, our long-term goal is to use technology and data science capabilities to improve our customer experience by providing them with an integrated ecosystem of financial services.
Navi’s growth is fueled by strategic investors.
Navi issued 1,700 non-convertible debentures (NCDs) with a face value of ₹10,000,000 each, as mentioned by the Registrar of Companies (RoC).
• A total of ₹10 crore from Siddharth Colorchem, Ravi Dyewear, and Nahar Capital; additionally, ₹10 crore from NDX Finserve, Arpee Group, Ambit Finvest, and Grey Glass India Pvt Ltd.
• ₹120 crore from Phillip Capital is part of the debt financing.
Navi’s vision for the future of Fintech
As India moves towards digital financial services, leading fintech players also evolve to meet the growing demands of the industry. Navi intends to scale its services, ranging from loans, health insurance, and UPI transactions. Bansal clarified its priorities: “Fintech should prioritize regulation, even if it is detrimental to the interests of its consumers.” This step is directed to make Navi a strong company and redefine brand identity and credibility. Bansal added further to his belief in long-term sustainable growth in a dynamic fintech industry as the blueprint for setting new benchmarks in fintech.
