Navi Finserv, a fintech venture led by Sachin Bansal, has successfully raised $38 million (around Rs 320 crore) funding from JP Morgan through a securitisation deal. This funding will help accelerate Navi’s digital lending efforts, according to a company release.
This deal is one of the first securitisation transactions JP Morgan has done in India. It involves a Pass-Through Certificate (PTC) transaction in the personal loans sector. A PTC allows the holder to receive interest payments from the loans.
Navi Finserv explained that the deal is backed by a pool of unsecured personal loans that the company has originated and will manage. The company emphasized that digital lending is expected to make up about 60% of the fintech market in the future.
Previous Fundraising Efforts
In recent months, Navi has been actively raising funds. In May, the company raised Rs 150 crore through private Non-Convertible Debentures (NCDs). In March, Navi secured Rs 525 crore from public NCDs.
Endorsement of Loan Portfolio Quality
“This deal is a significant endorsement of the high quality of our loan portfolio and the growth Navi has achieved over the past few years. We look forward to strengthening our relationship with JP Morgan even further in the future,” said Sachin Bansal, executive chairman and CEO of Navi Finserv.
Growth in Digital Lending
Navi highlighted the rapid growth in digital lending in India, driven by the increase in smartphone use, internet access, and the demand for faster and more convenient loan disbursements. The company believes it is well-positioned to take advantage of this growth.
Commitment to Digital Lending
“This transaction marks our entry into the high-growth digital lending sector in India and aligns with our commitment to support the innovation economy. We are engaging with multiple companies in this space in India and providing them with capital raising and financial solutions, including liquidity and risk management,” said Kaustubh Kulkarni, senior country officer for India and vice-chair for Asia Pacific at JP Morgan.
Growth in UPI Payments
Navi has also experienced significant growth in its UPI payments, which have increased 12 times over the past three months. This growth is attributed to the attractive cashback rewards Navi offers.
With this new funding, Navi Finserv is set to further expand its digital lending operations, positioning itself as a key player in India’s fintech market. The company’s strategic partnerships and innovative solutions will likely drive continued growth and success in the future.
