Sachin Bansal’s fintech Navi seeks $2 billion valuation in its first major outside funding round | TechCrunch

Flipkart co-founder Sachin Bansal in talks to raise funds for his new Indian fintech startup navigationThree people familiar with the matter told TechCrunch that Bansal is in talks with investors to raise funds at a valuation of about $2 billion. He hopes to raise $200 million to $400 million, one of the sources said.

Bengaluru-based startup Navi has been largely self-funded so far — Bansal owns 97% of the company — and this will be the company’s first major external round since its inception in 2018.

Sources cautioned that talks have not yet crystallized into a deal, so terms and Bansal’s interest in outside funding could change. A spokesman for Navi declined to comment.

Navi offers customers personal and home loans as well as health insurance, but has experienced some financial ups and downs. Navi initially Hopes to raise $440 million through public listing, according to its 2022 filing. However, the startup abandoned those plans last year as the IPO market tanked.

Funding review This shows a major shift in the Indian venture capital market and is an encouraging sign for global fintech.After a particularly tough 2023, overall new venture financing Nationwide dropped 73%which could be a sign that growth-stage funding rounds are back on the table.

Abu Dhabi sovereign wealth fund ADIA is working with Return to Indian audio storytelling platform Pocket FMTechCrunch reported last month. Indian eyewear brand LensKart, Temasek-backed consumer nutrition platform HealthKart and bike taxi aggregator Rapido Also in talks to raise new growth stage fundingIndian media “Economic Times” reported on Thursday. Malaysian sovereign wealth fund Khazanah is one of the investors Swiggy-backed Rapido has approached in recent weeks, a person familiar with the matter told TechCrunch.

A recent report showed that large funding rounds in the Indian startup ecosystem fell sharply last year as global investors such as Tiger Global and SoftBank reduced investments and domestic venture capital firms shifted their focus to early-stage companies. Bain Report.

Regulatory actions by the Reserve Bank of India in recent years have also affected card-issuing and lending startups, further spooking many investors in the fintech sector.

Under Bansal, Flipkart was a trailblazer for new startups in India, raising billions of dollars from a range of strategic and financial investors. He subsequently left the startup in 2018 with a $1 billion windfall and chose to bootstrap Navi, which he founded the same year.

Even though this may be Navi’s first external financing, that doesn’t mean Bansal isn’t negotiating with interested parties. As TechCrunch previously reported, the fintech company held talks with potential investors including SoftBank ahead of its IPO filing. Those discussions stalled after Navi raised money.The application for a banking license is reject According to previous reports by TechCrunch, it was implemented by the country’s central bank.

Navi has narrowed its focus in recent quarters. Sells its microfinance unit Chaitanya India Bansal said at the time that it acquired the company in August for $178.5 million as part of a “strategic plan to focus on digital-first businesses.”

during an interview publish Indian media outlet Moneycontrol said on Tuesday that Bansal said he would restart IPO plans, but only “in a few months, once we are ready.”

Bansal has also not given up on the idea of ​​turning Navi into a bank. “At the moment, I would say we have put them on hold until we see that is possible again in the future,” he told Indian media. Then, when regulators give the green light at the appropriate time, we will resume again. “

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