Navi Finserv, the fintech unicorn led by Sachin Bansal, is gearing up to raise up to INR 600 Cr through the issuance of Non-Convertible Debentures (NCDs), aimed at fueling its business expansion.
The total issue size, inclusive of a green shoe option of up to Rs 300 crore to manage oversubscription, was announced by the company.
These secured, rated, and listed NCDs will come with tenors of 18, 27, and 36 months, offering effective yields ranging from 10.47% to 11.19% per annum.
Scheduled to open for subscription from February 26 onwards, the funds raised from this initiative will be allocated towards onward lending, financing, loan repayment, and other general corporate purposes.
Sachin Bansal expressed his satisfaction with the company's past achievements in fund-raising and announced the launch of Navi Finserv’s third public debt issue. He highlighted the strategic utilization of funds to enhance customer experience through technology and data science capabilities, expand reach across India, and diversify into new product lines.
This marks Navi Finserv's third capital raise through NCDs in the last two years. The company successfully concluded its maiden Public Issue I and II of secured, rated, listed, and redeemable NCDs in FY 2023 and FY 2024, raising approximately INR 495 Cr and INR 481 Cr respectively.
Navi Finserv, a subsidiary of Navi Technologies co-founded by Bansal and Ankit Agarwal, has demonstrated robust financial performance. In FY23, it reported a net profit of INR 172 Cr, a significant improvement from the loss of INR 67 Cr in the previous fiscal year. The operating revenue surged 2.8 times to INR 1,283 Cr during the reported period.
The parent company, Navi Technologies, filed its DRHP in March 2022 for an IPO to raise INR 3,350 Cr. Despite regulatory approval received in September 2022, the IPO launch is pending. The IPO proceeds are earmarked for investments in Navi Finserv and Navi General Insurance Limited, along with general corporate purposes.
As Navi Technologies awaits its IPO, the fundraising through NCDs underscores its commitment to bolstering its financial position and advancing its strategic objectives.