Navi Finserv Secures Rs 150 Crore Through NCD Issuance

Sachin Bansal Navi
Preeti Bali / 7:55 am / May 23, 2024

Financial services platform Navi Finserv, led by entrepreneur Sachin Bansal, has secured Rs 150 crore in fresh capital through the issuance of non-convertible debentures (NCDs).

The company’s regulatory filings with the Registrar of Companies reveal that a special board resolution authorized the allotment of 15,000 NCDs, each valued at Rs 1,00,000, raising a total of Rs 150 crore.

Investment Details

This debt round saw participation from six individual investors, including prominent figures from the Dadachanji Group. Kairus Shavak Dadachanji, Chairman of the Dadachanji Group (which encompasses companies like Kaisha Packaging, Kaisha Lifesciences, and Sovereign Pharma), along with Pervin Kairus Dadachanji and Rishad Kairus Dadachanji, collectively invested Rs 110 crore. The remaining Rs 40 crore came from Rohit Kapadia, Sandhya Kapadia, and Yash Kapadia.

Funds Allocation and Previous Fundraising Efforts

Navi Finserv intends to utilize the raised capital for various purposes, including lending activities, loan financing, repayments, and general corporate needs. This NCD issuance follows Navi’s previous fundraising efforts through NCDs in May 2022 (Rs 600 crore) and July 2023 (Rs 500 crore).

Delayed IPO Plans and Recent Performance

In March 2022, Navi Finserv filed a draft red herring prospectus (DRHP) with SEBI, aiming to raise up to Rs 3,350 crore through an initial public offering (IPO). However, unfavorable market conditions necessitated a delay in the IPO plans despite receiving regulatory approval. Following this delay, the company reportedly underwent a layoff of nearly 200 employees.

Despite the postponement of the IPO, Navi Finserv has exhibited positive financial performance. For the quarter ending September 2023 (Q2 FY24), the company recorded Rs 421.5 crore in revenue from operations and a profit of Rs 10.86 crore, as per their unaudited financial statement.

Majority Ownership by Sachin Bansal

Startup data platform TheKredible indicates that Sachin Bansal retains nearly 98% ownership stake in Navi Finserv.


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