Navi Finserv, under the leadership of Sachin Bansal, has successfully raised Rs 150 crore through the issuance of non-convertible debentures (NCDs), marking a significant milestone in the company’s fundraising journey. This round of funding saw participation from six individual investors, including key figures from the renowned Dadachanji Group.
The board of Navi approved the issuance of 15,000 NCDs at an issue price of Rs 1,00,000 per debenture, resulting in a total infusion of Rs 150 crore. Notably, prominent members of the Dadachanji Group, such as Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji, contributed a substantial amount of Rs 110 crore to this funding round. Additionally, Rohit Kapadia, Sandhya Kapadia, and Yash Kapadia collectively invested Rs 40 crore, further bolstering the financial support for Navi.
The Dadachanji Group, led by Kairus Shavak Dadachanji, holds significant interests in various companies, including Kaisha Packaging, Kaisha Lifesciences, and Sovereign Pharma.
This fundraising initiative comes on the heels of Navi’s announcement in February to raise Rs 600 crore through a public issue of NCDs. The company plans to offer NCDs with varying maturities and attractive yields, ranging from 10.47% to 11.19%. The capital raised will be deployed towards advancing Navi’s lending activities, financing initiatives, loan repayments, and general corporate requirements.
Amidst challenges in securing equity capital at desired valuations, Navi has demonstrated resilience by exploring alternative fundraising avenues. Previous successes in raising funds through NCDs, including Rs 600 crore in May 2022 and Rs 500 crore in July 2023, underscore the company’s ability to navigate dynamic market conditions effectively.
Despite postponing its IPO plans due to unfavourable market conditions, Navi remains focused on strengthening its financial position and supporting its growth trajectory. The company’s robust performance, with revenue from operations reaching Rs 421.5 crore in Q2 FY24 and a reported profit of Rs 10.86 crore, reflects its resilience and potential for future expansion.
By strategically raising funds through NCDs, Navi reaffirms its commitment to driving innovation and excellence in the financial services sector. With a clear vision and strong financial backing, Navi is well-positioned to capitalize on emerging opportunities and cement its position as a key player in India’s rapidly evolving financial landscape.