Navi Finserv, the fintech venture led by Sachin Bansal, has secured $38 million (approximately Rs 320 crore) from multinational financial services firm JP Morgan through a securitisation deal. The funds will be used to accelerate digital lending, as stated in a media release by the company.
This transaction marks one of the first securitisation deals JP Morgan has undertaken in India, featuring a Pass-Through Certificate (PTC) transaction in the personal loans sector. The PTC entitles the holder to receive interest payments.
According to Navi, the deal will be backed by a pool of unsecured personal loans that the company has originated and will service. Navi highlighted that digital lending is anticipated to account for around 60 percent of the fintech market.
In May, Navi raised Rs 150 crore through private Non-Convertible Debentures (NCDs) and Rs 525 crore from public NCDs in March.
“This deal serves as a substantial endorsement of the high quality of our loan portfolio and the sustained growth that Navi has been able to achieve in the past few years. We look forward to strengthening our relationship with JP Morgan even further in the future,” said Sachin Bansal, executive chairman and CEO of Navi Finserv.
Navi noted the rapid growth in digital lending in India, driven by increasing smartphone penetration, internet usage, and the demand for faster and more convenient loan disbursals. The company believes it is well-positioned to capitalize on this growth.
“This transaction marks our entry into the high-growth digital lending sector in India and is aligned with our firm-wide commitment to support the innovation economy. We are deepening our engagement with multiple companies in this space in India and providing them with capital raising and financial solutions, including liquidity and risk management,” said Kaustubh Kulkarni, senior country officer for India and vice-chair for Asia Pacific at JP Morgan.
Navi has also seen significant growth in its UPI payments, which have increased 12 times over the past three months, aided by the attractive cashback rewards the company offers.
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