As the population in the country’s urban areas continues to expand, the demand for consumer durable financing will keep on increasing. We all have noticed a significant change that the Indian banking system is undergoing.
However, many may argue that this change is pandemic-driven, but even before the pandemic, these digital lending platforms that we see are growing exponentially were on the verge of making it big. We can only say that the pandemic fueled their growth beyond expectations.
So, in this article, we will be talking about the success story of Navi.
Back in 2018, Ankit Agarwal and Sachin Bansal formed a financial services firm in India called Navi, headquartered in Bangalore. Navi offers its customers a range of financial services such as digital home loans, personal loans, mutual funds, healthcare insurance, and micro-loans.
Sachin Bansal left Flipkart in December 2018 and created BACQ Acquisition Private Limited, which was later rebranded as Navi Technologies Private Limited. It works on a digital lending platform that makes finance-related services more economical and feasible for everyone. Navi offers its customers loans up to Rs. 20 lakhs in a completely cashless process. The loans have a duration of 3 to 36 months. Customers can even get 2-wheeler, local business, residential, and educational loans through Navi Finserv. The Securities and Exchange Board of India (SEBI) has also granted Navi a stockbroking and investment advising license.
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So, coming back to the point when Sachin Bansal left Flipkart, he had his eyes set on creating the next big thing. We came to know Navi from this vision, which means ‘new.’ It depicts what the company stands for. We all have witnessed that more and more people across the country are accepting and adopting the change in our financial services and banking sector, i.e., digitalization. Navi is nothing but a fine example of this change and has the most appropriate tagline to support it- ‘Get an instant loan using Navi.’
Navi has a clear vision and a simple mission statement: “Our mission is to provide financial products and services that are simple, affordable, and accessible by building a customer-centric and technology-first organization.”
The plans for Navi aim to make it even bigger. The company is expected to file a draft red herring prospectus (DRHP) with SEBI for Rs. 4,000 crores initial public offering (IPO) shortly. The company is expected to make its IPO in June of this year. The IPO will have no offer for sale (OFS) component and will be conducted solely through fresh share issuance.
This move is expected to aid the expansion of Navi’s operations in mutual funds, personal loans, and microfinancing. After becoming a public company in February 2022, which kick-started its preparations for an initial public offering, Navi also enlisted the aid of BofA Securities, Axis Capital, and ICICI Securities to manage its public offering.