The fintech unicorn’s new loan securitization deal is backed by a pool of unsecured personal loans, originated and managed by Navi Finserv.
Navi Finserv, earlier, had entered into a $38 million (approximately INR 318.2 Cr) personal loan securitization deal with financial and investment banking firm JP Morgan, in July.
The consolidated operating revenue of Navi Finserv, a subsidiary of fintech startup Navi Technologies, stands at INR 1,906.2 Cr during the financial year 2023-24 (FY24)
Sachin Bansal’s fintech unicorn Navi Finserv has closed a $24.5 million (approximately INR 206 Cr) commercial loan securitization deal with Goldman Sachs (India) Finance Pvt Ltd.
The company said in a statement that the securitization transaction was supported by a pool of unsecured personal loans, originated and managed by Navi Finserv.
For the uninitiated, securitization is the process of converting an asset – in this case, personal loans – into marketable securities, usually with the aim of raising capital by selling it to other investors.
“This transaction with Goldman Sachs will fuel Navi Finserv’s long-term mission to simplify and enable access to financing for a billion people. Navi Finserv continues to grow its operations with high-quality underwriting, to help attract more people into the formal financial system by providing access to transparent credit and delivering an exceptional customer experience,” a spokesperson said from Navi Finserv.
Established in 2012 by Ankit Agarwal and Sachin Bansal, Navi Finserv offers different types of loans including personal, auto and home loans. The majority of its revenue comes from interest income on loans, investments and deposits with banks.
The lending services provider had earlier signed a $38 million (approximately INR 318.2 Cr) personal loan securitization deal with financial and investment banking firm JP Morgan, in July.
On the other hand, Goldman Sachs also made a similar move securitization transaction with lending tech startup Aye Finance worth INR 212 Cr (over $25 million), in late August, to fuel the company’s expansion of lending operations to micro-enterprises across the country.
This new development comes a few weeks after the company announced its financial results for the financial year 2023-24 (FY24).
The consolidated operating revenues of Navi Finserv, a subsidiary of Navi Technologies, stood at INR 1,906.2 Cr in FY24 and excluding the revenues of Chaitanya India in FY23, the Navi Finserv’s operating revenue increased by ~48% from INR 1,283 Cr.
Meanwhile, following the sale of the subsidiary, consolidated profit after tax (PAT) from continuing operations fell 56% year-on-year (y-o-y) to INR 115.6 Cr during FY24.