Fintech major Navi, co-founded by Sachin Bansal, is preparing for its second attempt at an initial public offering, targeting a filing by the March quarter of fiscal year 2027. The company aims to raise approximately ₹3,000 crore through a public listing on Indian stock exchanges. This strategic move is preceded by discussions for its first external funding round, which is expected to be led by Dutch technology investor Prosus.
A Renewed Push for Public Listing
Navi has appointed Kotak Investment Banking to manage its renewed public listing, which will likely include a mix of fresh shares and an offer for sale. This marks the company's second effort to go public after shelving a planned ₹3,350 crore IPO in 2022 despite receiving regulatory approval. The previous decision to delay was influenced by volatile market conditions and a significant correction in technology stock valuations at the time.
Securing Pre-IPO Capital
Ahead of its public market debut, Navi is in advanced talks to secure its first-ever external equity investment, with Prosus poised to lead the round. While discussions are ongoing, reports indicate a valuation negotiation, with Prosus reportedly willing to invest at a valuation of around ₹13,000 crore. This pre-IPO funding is crucial for establishing a valuation benchmark and bolstering investor confidence before the listing.
Evolving Business and Financial Performance
Since its initial IPO attempt, Navi has significantly diversified its business model, evolving from a digital lender into a broad financial services platform. Its offerings now encompass personal loans, home loans, health insurance, mutual funds, and UPI payments. While customer acquisition is supported by its payments vertical, lending continues to be the primary engine of revenue for the company.
The company's financial health has shown notable improvement, with Navi reporting a net profit of ₹292 crore on operating revenue of ₹2,461 crore for fiscal year 2026. This performance marks a strong recovery from a net loss of ₹126.3 crore in the preceding fiscal year. The sale of its microfinance arm in 2023 also provided a significant boost to its profits for fiscal year 2024.
Navigating Regulatory and Leadership Changes
Navi has also successfully navigated regulatory hurdles, including a temporary directive from the Reserve Bank of India in late 2024 to halt loan disbursals over supervisory concerns. The restrictions were lifted within two months after the company enhanced its systems and compliance frameworks. The lending business has since recovered, with monthly disbursals now ranging between ₹3,000 crore and ₹4,000 crore.
The company has also undergone a leadership restructuring to strengthen its governance ahead of the IPO. Co-founder Sachin Bansal transitioned to the role of executive chairman in early 2025. This was accompanied by the appointment of Rajiv Naresh as the CEO of Navi Ltd and Abhishek Dwivedi as the CEO of its subsidiary, Navi Finserv.
Navi's renewed IPO ambitions are supported by a more diversified business, improved financial performance, and a strengthened leadership team. The pre-IPO funding round will be a critical step in setting market expectations and demonstrating investor confidence in its long-term strategy. As the company prepares to approach the public markets again, its ability to execute this listing will be a key test of its resilience and strategic evolution.