Flipkart Founder’s Navi Profile for a $440 Million IPO – TechCrunch

Sachin Bansal’s Navi Technologies, a fintech startup that provides insurance and loan products to customers, has filed for a $440 million IPO as the 40-year-old entrepreneur cashed in on a wave of commercial ventures Domestic e-commerce once again creates a bold choice.

Navi Technologies’ initial public offering will be entirely comprised of new shares, and the startup may consider raising a pre-IPO offering, it said in a draft prospectus filed with local regulators on Saturday.

The IPO comes at a time when technology stocks – or most other stocks – have plunged in recent months. All the tech startups including Zomato, Paytm, Nykaa and PolicyBazaar that went public last year have traded at their lowest share prices in recent weeks.

But for Navi Technologies, which has been eyeing an initial public offering for more than a year, there is also a sense of urgency in going public. According to two people familiar with the matter, the startup’s most recent attempt to raise money from SoftBank and other investors with a valuation of more than $4 billion collapsed after it failed to secure the paper. allowed to become a bank.

Founded in 2018, Navi offers digital personal loans, home loans and property credit in the lending sector. It also offers customers health insurance and digital asset management with a focus on passive funds. So far, the startup is almost entirely funded by Bansal.

Billionaire Bansal, who co-founded Flipkart over a decade ago and was kicked out of the company before selling to Walmart, and Navi has largely stayed out of the limelight. The draft prospectus (PDF), for the first time, provides color on Navi’s various business sectors and financial health.

“With an in-house NBFC (non-banking lender) branch, AI/ML-based underwriting, and a digital-only D2C approach, Navi was able to exercise control over products.” lending its loans from sourcing, underwriting to collecting and delivering customer experience,” the startup describes itself in its draft prospectus.

Navi says it is using technology to serve underserved customers. The startup guarantees “instant loan disbursement, offers low-interest digital home loans, leveraged technology to manage credit default and fraud risks, uses analytics data to train lending algorithms to offer attractive rates and better manage loan accounts, while doing both digital and field collections in its favor. ”

Navi’s value preposition, in its own words

The startup – which reported a consolidated profit of $9.2 million in fiscal year 21 on revenue of $17.8 million – said its retail health insurance and personal loan products they are helping customers to register in less than 4.5 minutes and 2.5 minutes respectively.

In the 21 months since its launch, Navi’s personal loan business has served more than 481,000 customers using 84% of India’s zip codes and extended them an additional 2 million Indian rupees with an expiry date of up to 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 were approved without any human assistance on the Navi App. Furthermore, we have developed our chat-based interface to ensure that our customers are served seamlessly throughout their purchase journey,” the startup added.

“We offer health insurance premiums through EMIs where customers can pay a fixed amount monthly according to their policy which has made our product attractive and affordable. For the nine months ended December 31, 2021, our GWP was 667.60 million yen, of which 63.26 million yen was from the retail health insurance segment. During the nine months ended December 31, 2021, we issued a total of 220,491 policies, of which 27,800 were retail health policies. ”

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