July 28, 2025: Navi Technologies Ltd, the financial services company co-founded by Flipkart’s Sachin Bansal, has raised ₹170 crore through a private placement of shares. Regulatory filings dated July 25 revealed that the capital infusion came from a consortium of nine institutional and private investors, following board approval in mid-June.
The fundraising process was completed without shareholder approval, having received the finance committee’s nod on July 10. The participating investors in this round include Aarpee Commercial Company, Ravi Dyeware Company, Siddharth Colorchem, Ambit Finvest, Grey Grass India, Nahar Capital and Financial Services, NDX Financial Services, Phillip Commodities India, and Phillip Finance and Investment Services India.
This capital injection aims to support the financial products firm’s continued growth, particularly its lending and health insurance offerings. Navi provides a suite of financial products including personal loans, mutual funds, and insurance services.
Navi Technologies to Grow Loan, Mutual Fund, and Insurance Offerings
In the financial year ended March 31, 2025, Navi saw its revenue from operations rise by 19.1% year-on-year to ₹2,271 crore, driven by a 23% increase in interest income which reached ₹1,981 crore. This increase came despite regulatory challenges that temporarily paused lending activity for over a month.
However, the financial products firm’s net profit declined significantly due to the absence of one-time gains that had bolstered the previous year’s results. Profit after tax (PAT) dropped 66.8% to ₹222 crore in FY25, compared to ₹669 crore in FY24. The prior fiscal benefited from a ₹704 crore gain from the sale of Avi’s subsidiary, Chaitanya India Fin Credit, which was completed in November 2023.
Core profitability faced headwinds with impairment charges on financial instruments increasing 16.8% year-on-year to ₹579 crore, reflecting rising loan loss provisions. Finance costs were up 21.1% at ₹797 crore, and employee benefit expenses rose 15.1% to nearly ₹173 crore. Total expenses increased by 13.6% to ₹1,989 crore.
The recent ₹170 crore funding round provides Navi Technologies with additional resources to accelerate its service offerings and expand its footprint in the highly competitive Indian financial services sector. Strategic use of these funds will be critical as the company navigates regulatory hurdles and strives to improve core profitability.
