Navi Technologies IPO: Decoding Sachin Bansal's fintech in 5 charts

Sachin Bansal, Founder, CMD and CEO of Navi Technologies.

Flipkart co-founder Sachin Bansal's plan for an initial public offering of Navi Technologies’ has been set in motion with the company filing a Draft Red Herring Prospectus (DRHP) on March 12.

According to the DRHP filed with the market regulator Securities and Exchange Board of India (SEBI), the company is looking to raise Rs 3,350 crore through the IPO through a fresh issue of shares. The IPO will not have an offer for sale (OFS) by shareholders, meaning Bansal himself who holds a 97.39 percent stake in the fintech.

Bansal founded Navi Technologies in December 2018 just six months after quitting his first venture Flipkart, which was snapped up by Walmart for $16 billion the same year.

Moneycontrol, on December 8, 2021, was the first to write about Navi’s listing plans.

The company's plans to go public comes amid uncertainty over its Universal Banking licence application. As it awaits the Reserve Bank of India's nod, here is a look at Navi's business, which includes personal and home loans, health insurance and asset management, and what it plans to do with the IPO proceeds.

The company has shared details for the first nine months of the financial year 2021-22. As per the data, in FY21, the company was profitable at Rs 71.1 crore. In the first nine months of FY22, it incurred losses worth to the tune of Rs 206.42 crore.

As per the DRHP, the fintech plans to invest the proceeds of the IPO in subsidiaries Navi Finserv and Navi General Insurance, besides general growth plans.

The largest vertical for Navi is microfinance loans where the company had assets under management (AUM) worth Rs 1,808 crore in Q3 of FY22. Gross non-performing assets (NPAs) for the vertical stood that 3.83 percent in the same quarter. For personal loans, Gross NPAs stood at 1.12 percent.

The platform also has more than one lakh mutual fund investors and had gross written premiums worth Rs 29.6 crore in health insurance in the third quarter of FY22.

Bansal is the company chairman, managing director and CEO. Ankit Agarwal, Bansal's college friend, is the executive director and Chief financial officer (CFO) of Navi Technologies.