Sachin Bansal's Navi raises $100 million in external funding
Fintech company Navi, founded by Flipkart co-founder Sachin Bansal, has secured $100 million in funding from Dutch investment firm Prosus. This marks the company's first significant external funding round in nearly eight years.
Navi, the fintech venture founded by Flipkart co-founder Sachin Bansal, has received $100 million in investment from Dutch investment firm Prosus. This marks the company's first major external funding round in nearly eight years, providing external validation for Bansal's financial services endeavor.
The investment is significant given Navi's long period of self-funding. Bansal initially poured a substantial portion of his Flipkart exit proceeds, estimated at $400-450 million, into the company with the goal of building a technology-driven, full-stack financial platform. While the company reports its lending Assets Under Management (AUM) have crossed ₹13,000 crore and its UPI business has become the country's fourth-largest app, its consolidated losses widened significantly in FY26.
Industry reports suggest the funding round may have occurred at a valuation markdown, potentially at $1.3 billion compared to earlier discussions hovering near $2 billion. This valuation gap becomes more pronounced when considering Navi's substantial losses in FY26, partly driven by investments in its UPI business and the development of new ventures.
Navi's path to its first major institutional funding has been complex. The company previously pursued an Initial Public Offering (IPO) and received approval for a listing worth over ₹33,000 crore in March 2022. However, due to shifting market conditions and the rejection of its banking license application, Navi later sold its microfinance subsidiary, Chaitanya India Fin Credit, for $178.5 million. This move signaled a shift away from owning a full-stack financial services company towards focusing on digital lending and insurance.
Prosus's investment now appears to be a vote of confidence in Navi's business turnaround. However, the funding comes as the company continues to navigate an increasingly regulated environment and strives for profitability despite past losses and a valuation reset. The company's future will depend on its ability to navigate the competitive financial landscape and execute its growth strategy.