- Navi Finserv secures $38 million from J.P. Morgan through a personal loans securitization deal.
- The transaction marks J.P. Morgan's first Pass-Through Certificate (PTC) deal in India's digital lending sector, signaling its entry into the Indian fintech market.
- Navi Finserv has been actively raising funds, including ₹150 crore through private NCDs and ₹525 crore from public NCDs earlier this year.
Navi Finserv, a non-banking financial company under Navi Technologies, announced on Tuesday that it secured $38 million through a personal loans securitization deal with US-based J.P. Morgan.
The Bengaluru-based fintech firm plans to use these funds to expand and grow its personal loans business.
“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.
This investment is one of JP Morgan's first securitization deals in India using a Pass-Through Certificate (PTC) specifically for personal loans. The deal involves a pool of unsecured personal loans originated and managed by Navi Finserv, structured as PTCs. These certificates allow holders to receive interest payments, making them appealing financial instruments.
Additionally, this marks JP Morgan's entry into the Indian fintech sector with its first PTC transaction in digital lending.
“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.
Before this deal, Navi Finserv raised ₹150 crore through private non-convertible debentures (NCDs) in May and Rs 525 crore from public NCDs in March. Although Navi had planned an IPO and filed a draft red herring prospectus in March 2022, they decided not to go ahead due to unfavorable market conditions. The firm expects digital lending to make up about 60% of the fintech market by 2030.
Edited by Harshajit Sarmah
