Navi Technologies, co-founded by Sachin Bansal, is preparing to file for a Rs 3,000 crore IPO by early 2027. This marks the fintech firm's second attempt to list, following a previous postponement in 2022. The company is currently exploring pre-IPO funding to set a clear valuation benchmark before approaching the public markets.
Navi Ltd, the financial services company co-founded by Flipkart's Sachin Bansal, is making a fresh attempt to enter the public markets. The Bengaluru-based firm is planning to file its draft IPO papers between January and March 2027, with the objective of raising approximately Rs 3,000 crore. The potential issue is expected to include both a fresh issuance of shares and an offer-for-sale component, with Kotak Investment Banking currently advising the company on the process.
Strategic Path to Public Listing
This move marks a second effort for the company to list its shares on the stock exchanges. Navi previously filed draft papers in 2022 for a Rs 3,350 crore offering and received approval from the Securities and Exchange Board of India (SEBI). However, the company decided not to proceed at that time, citing market volatility and a difficult climate for technology companies.
Before launching the public issue, Navi is reportedly in discussions to secure its first major external equity funding round. Reports suggest that Dutch investor Prosus is leading these talks. This pre-IPO round is aimed at establishing a clearer valuation benchmark for the company before the public offering. Discussions regarding the valuation are ongoing, with some reports suggesting a potential valuation target of approximately Rs 13,000 crore.
Business Evolution and Performance
Since its inception in 2018, Navi has shifted from being primarily a digital lending startup to a multi-faceted financial services platform. Its offerings now include personal and home loans, health insurance, mutual funds, and UPI payment services.
Financial performance has seen significant fluctuations as the business matured. In fiscal year 2024, the company reported a profit after tax of Rs 358.5 crore, a notable shift from the loss of Rs 119.3 crore recorded in the previous fiscal year. In 2023, the company also streamlined its operations by selling its microfinance arm, Chaitanya India Fin Credit, for Rs 1,479 crore.
Regulatory History and Monitoring
Investors may note that Navi’s non-banking finance arm, Navi Finserv, has previously encountered regulatory scrutiny. In October 2024, the Reserve Bank of India (RBI) placed a temporary ban on the company, along with three other lenders, regarding the issuance of new loans due to concerns over high interest rate pricing. These restrictions were lifted in December 2024 after the RBI stated it was satisfied with the firm's revised processes and compliance efforts.
As the company moves toward its goal of a public listing, market observers will likely monitor its ability to maintain growth while staying within regulatory guidelines. The progress of the pre-IPO funding round and any updates on the final IPO structure will be key developments for investors to track in the coming months.