You must’ve seen the annoying ad of people telling you how you can get a personal loan instantly in 5 minutes, right? And you must’ve heard about “NAVI” , right?
It was founded by “Sachin Bansal” (Founder of flipkart) with his former colleague “Ankit Agarwal” (who is the former vice president of Bank of America & Deutsche bank”) in 2018.
NAVI is a financial services company that provides instant small ticket size personal loans, Insurance & asset management services through its mobile App.
BUSINESS SEGMENTS :-
PERSONAL LOANS - Navi provides small ticket size personal loans through its App in a completely digital way without any human intervention. They started this segment in April 2020 under brand name “NAVI”.
According to RedSeer report, the personal loan category has grown the fastest and is expected to grow at a CAGR of 27% b/w the financial years 2021 and 2026. Over the same period, the contribution of digital lending to total personal loan disbursals is estimated to increase from 19% to 41%.
HOME LOANS - They launched their home loan segment in February 2021 under the brand name “NAVI”.
According to RedSeer report, home loans are the largest lending product and second largest digital lending product and the amount of digital home loan disbursals in India is expected to grow at a CAGR of 53% b/w 2021 & 2026.
GENERAL INSURANCE -
ASSET MANAGMENT - They started India’s 1st fully passive mutual fund with their 1st passive fund, NAVI NIFTY 50 INDEX FUND, launched in July 2021 and had AUM of Rs1,673.24 million as of December 31,2021.
According to RedSeer report, mutual fund AUM in India is expected to grow at a CAGR of approximately 17% to reach US$ 1 trillion b/w the FY 2021 and 2026. Passive investing AUM is estimated to grow at a CAGR of 40-45% during the same period.
MICROFINANCE - NAVI acquired Chaitaniya India Fin credit Private ltd in March 2020. It’s a microfinance NBFC which runs on joint liability group-lending model. As of December 31, 2021, microfinance business had a closing AUM of 18,088.54 million Rs. These loans are not offered through Navi App and this business is operated separately.
KEY OPERATIONAL METRICS :-
Total App logins - 4,113,900
Personal loans -
Personal loans AUM - 14,186 (Million Rs)
Personal loans Yield - 26.24%
GNPA - 1.12% (Climbed to 12.36% in June 2021)
NNPA - 0.03% (Climbed to 0.99% in June 2021)
Provision as % of AUM - 7.29%
Home loans -
AUM - 1,777 (million rs)
Yield - 7.06%
71.96% customers were from personal loans segment (Cross-selling)
General Insurance -
Gross Written premium - 296.81 (Million Rs)
Total policies sold - 18,671
Solvency Ratio - 407%
Asset Management -
AUM - 9,428 (Million Rs)
Passive funds AUM - 1,673.24 (Million Rs)
Total investors - 1,04,989
Microfinance -
AUM - 18,088 (Million Rs)
Yield - 20.38%
GNPA - 3.83% (reached a high of 5.45% in june 2021)
NNPA - 0.98% (reached a high of 1.38%)
In technology team they have around 262 full-time employees as of December 31st, 2021.
Business model -
28.93% customers in personal loan segment were 1st time borrowers, 50% of them had a CIBIL score of 750+ and 85% had CIBIL score of 725+
Collection process -
71.69% home loan customers were from Personal Loan user base.
Customer journey & underwriting process -