Navi Aiming To Go Public In FY26, Claims Sachin Bansal

Sachin Bansal-led fintech unicorn Navi Technologies is looking to get listed on the bourses in the current fiscal year. 

Addressing a session at the ongoing Startup Mahakumbh, Bansal said that the startup is considering launching its initial public offering (IPO) in FY26.

With 20 Mn monthly active users, Bansal believes that Navi is now at a stage to deploy more proceeds.

“We are at a stage where we can use more capital and the public market is the best source of capital, I believe, if you can handle what comes with it,” he said.

This marks a renewed push for Navi’s IPO plans after its previous attempt in 2022, when it filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an INR 3,350 Cr public issue but later withdrew due to market conditions.

The startup is also reportedly in discussions with a clutch of merchant bankers for its IPO.

Founded by Bansal and Ankit Agarwal in 2018, Navi Group includes various subsidiaries such as Navi Finserv, Navi General Insurance and Navi AMC. 

In February, Bansal stepped down as the chief executive officer of Navi Technologies and Navi Finserv amid a leadership shake-up. However, he continues to play a key role in driving the company’s growth as executive chairman of the Navi Group.

Navi Finserv’s consolidated operating revenue stood at INR 1,906.2 Cr in the financial year 2023-24 (FY24) as against INR 2,040.6 Cr in FY23. 

However, the numbers are not comparable as the FY23 numbers also included income from Navi Finserv’s former subsidiary Chaitanya India Fin Credit Private Limited. 

Following the sale of the subsidiary, the consolidated profit after tax (PAT) from continued operations slipped 56% year-on-year (YoY) to INR 115.6 Cr in FY24.

RBI’s Regulatory Restrictions On Navi Finserv

Navi Finserv was in the eye of the storm after facing regulatory hurdles when the Reserve Bank of India (RBI) imposed restrictions on the company in October last year over non-compliance issues. The sanction barred the non-banking financial company (NBFC) from disbursing loans.

However, after multiple rounds of review, the central bank lifted the restrictions in December.

Speaking on the regulatory challenges surrounding the fintech ecosystem, Bansal noted that while most sectors require founders to primarily focus on stakeholders such as customers, competitors, investors and employees, but in fintech, the regulator becomes the most important stakeholder.

Navi’s AI Adoption To Scale Operations 

Navi has also been advancing its use of technologies like AI to automate and optimise operations. Bansal also shared that most of Navi’s customer support system is now powered by GenAI.

Earlier this year, scammers exploited a bug in Navi’s tech system to allegedly carry out a fraud worth INR 14.26 Cr.