FinTech Navi Targets $2 Billion Valuation in India IPO

FinTech startup Navi is preparing to launch its initial public offering in India and will seek a valuation of as much as $2 billion, Bloomberg reported Thursday (Aug. 13), citing unnamed sources.

Navi aims to raise as much as 30 billion rupees (about $315 million) and file a prospectus by December, according to the report.

Talks around the IPO are ongoing, and the terms and the timing could change, the report said.

Navi’s financial services business encompasses lending, mutual funds, health insurance and UPI payments. The company was founded by Sachin Bansal after he co-founded Indian eCommerce company Flipkart, which was then sold to Walmart for $16 billion in 2018, per the report.

Navi received regulatory approval for an IPO in September 2022 after submitting a draft prospectus in March 2022, but the company later delayed the IPO when investor sentiment was driven down by domestic and international headwinds, according to the report.

Navi said on its website that the company’s mission is “to make financial products and services simple, affordable and accessible for a billion Indians.”

The company’s businesses include the Navi App, which is developed and owned by Navi Limited (formerly Navi Technologies Limited); Navi UPI, which is offered by Navi Limited as an NPCI-approved third-party application provider; cash and home loans, which are provided by Navi Finserv Limited; health insurance, which is offered by Navi General Insurance Limited; and multiple mutual fund schemes, which are offered by Navi Mutual Fund.

The Navi App provides financial products and services with a paperless process, minimal documentation, a simple and secure process, and round-the-clock customer support, the company’s website said.

When Walmart acquired about 77% of Flipkart for $16 billion in 2018, PYMNTS reported that this was the biggest deal ever seen in India’s eCommerce sector.

Doug McMillon, who was CEO of Walmart, said at the time of the acquisition: “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading the transformation of eCommerce in the market.”