Navi, a digital financial services startup, has raised $100 million in funding from Dutch investor Prosus, the company announced on Wednesday. The funds will help Navi grow as it plans to file for an initial public offering (IPO) this fiscal year. Navi had previously aimed to raise up to ₹3,350 crore but delayed its IPO because of market volatility.
Loan Growth and UPI Strategy
Navi's Unified Payments Interface (UPI) platform is boosting the growth of its lending arm, Navi Finserv. The company plans to expand its loan offerings beyond personal loans, which currently make up 90% of its ₹13,000 crore loan book. Abhishek Dwivedi, CEO of Navi Finserv, said the firm aims to enter new areas like merchant financing and loans against mutual funds. However, it will need a payment aggregator license to move forward with merchant financing.
Leadership and Future Plans
Navi's founder, Sachin Bansal, highlighted the importance of the partnership with Prosus, stating, "Their investment is a strong endorsement of the institution we're building at Navi." The company has appointed Rajiv Naresh as CEO of Navi Technologies, while Bansal serves as executive chairman. Navi disbursed loans worth around ₹23,287 crore in 2025-26, keeping a gross non-performing assets (NPA) ratio of 1.3% and a net NPA ratio of 0.3% as of March 2026. The firm sees about 100,000 new customers daily, but the loan approval rate varies between 5% and 50%.
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The funding and expansion plans could improve Navi's market position, especially in the fintech sector. Increased lending activity may affect asset-backed securities and consumer finance stocks as Navi seeks to broaden its product offerings. Investors will be watching for the upcoming IPO filing and further updates on Navi's licensing for merchant financing.
Based on reporting by: livemint.com