E-Commerce Billionaire Sachin Bansal’s company Navi has filed for a $440M Initial Public Offering (IPO). This will be the largest Indian tech startup IPO ever, representing a significant milestone for the company and its founder.
It is expected to be a major event in India’s tech and financial markets. In this article, we will look at the details of the IPO and its implications for the Indian economy.
E-Commerce Billionaire Sachin Bansal’s Navi Files for $440M IPO
Navi, founded in 2016 by the E-commerce billionaire Sachin Bansal, is a full-service financial technology company that provides end-to-end products for digital banking, digital payments and investment advisory. Navi currently operates in India and has a presence in over 15 countries.
The company has raised funds from leading venture capitalists including Blume Ventures, Matrix Partners India and Ribbit Capital. In its Series C round of funding in 2019, Navi raised $35 million from investors to support its international expansion plans. The additional capital also bolstered the already strong product suite including SavviX, an automated wealth management platform; Saarthi Savings Account; Saarthi Cards; and Metis (originally Alpa Labs), a SaaS based compliance platform for corporates.
On May 18th 2021, Navi filed its draft Initial Public Offering (IPO) with SEBI to raise up to $440 million by listing on both NSE India & BSE Indian stock exchanges in India. The proposed IPO is set to make Sachin Bansal one of India’s first E-commerce billionaires with his shareholding expected to hit 11% post listing. In addition, the proceeds from the IPO will be used for general corporate purposes and expansion into European markets such as UK & Germany.
Overview of the IPO
Navi Technologies, an Indian e-commerce startup founded by billionaire entrepreneur Sachin Bansal, has filed to raise $440 million in its IPO.
The company is the latest in a series of Indian e-commerce startups to tap into the public markets, with rivals Flipkart and Paytm already going public.
The filing with the Securities and Exchange Board of India (SEBI) on February 24th outlines how much money Navy intends to raise. The offering includes primary shares – newly-issued shares sold directly to investors – and existing shares owned by insiders and venture capitalists.
Navi expects to price its initial public offering between Rs. 280 and Rs 285 per share. At those prices, the company would fetch an enterprise value of about $2 billion, making it one of the five largest IPOs from technology companies based in India this year.
The IPO will be available exclusively through institutional buyers such as mutual funds and pension funds. Retail investors won’t be able to buy up units as Navi has opted not to pursue a retail offer. It will be listed on the National Stock Exchange (NSE) later this month under ticker NAVI.
Financials
E-Commerce Billionaire Sachin Bansal’s company, Navi, recently filed for an Initial Public Offering in India estimated to be worth approximately $440 million. This would represent the largest IPO in India since February 2021, when HDFC Bank raised $3.7 billion.
This section will discuss the financial components of the IPO, including the company’s planned share offering, pricing, and potential returns.
Amount of money raised
Navi, the e-commerce venture co-founded by Indian billionaire Sachin Bansal, has filed to raise $440 million in an initial public offering (IPO). The company indicated in its filing with the U.S. Securities and Exchange Commission that it hopes to use the proceeds for general corporate purposes and international expansion.
According to filings with the SEC, the IPO is expected to offer Navi’s Class A common stock at a price range of between $16 per share and $18 per share, which will value the company at up to $3 billion post-IPO. The IPO is expected to be priced on April 15th and open for trading on April 16th.
The filing also indicates that Navi will be offering 35 million shares of Class A common stock, with current investors including Tencent Holdings Ltd., Steadview Capital, Temasek Holdings Private Ltd., EDBI Private Ltd., Insurance Australia Group Ltd., and Visionnaire Ventures Pte Ltd. Additionally, Mr Bansal himself has indicated that he plans to acquire shares worth up to $20 million in his capacity.
This landmark Indian tech IPO is set to bring unprecedented amounts of capital into India’s technology sector from around the globe and will likely create huge positive impacts both financially and reputationally across India’s financial tech space. With this newest development, Sachin Bansal has further cemented his legacy as one of India’s greatest tech pioneers ever!
Breakdown of investors
The much-awaited roadshow for the initial public offering of e-commerce billionaire Sachin Bansal’s Navi Technologies (NITL) is currently underway and anticipated to hit $440 million. After two successful funding rounds raised by early investors, NITL has reported inclusive valuations over $4 billion with pre-IPO commitments from strategic investors like Hillhouse Capital and Falcon Edge.
During the IPO registration period, NITL collected 25 strategic investors into its investor pool led by notable financiers such as GIC and SoftBank Vision Fund. Other key investors include DCM Ventures, Lightspeed Venture Partners, Sequoia Capital India, Elevation Capital, Tiger Global Management LLC., global family offices such as Soros Fund Management LLC., DST Global Advisory Ltd., Hillhouse Capital, Falcon Edge and more. Preferred stock will be issued post-closing to select Chinese investor Tsu Kasell Venture Investment Partnership & Co. Ltd and SoftBank Corp International at a discounted offer price relative to common IPO shares. All preferred shares will be subject to a lock-up period of 180 days from the listing date of INTEL’s share on Bombay Stock Exchange Limited (BSE).
Breakdown of uses of funds
With the $440M initial public offering (IPO), Navi, founded by e-commerce billionaire Sachin Bansal, has provided a breakdown of how it intends to use the funds. Up to 20% of the IPO funds will be used on operational costs and investments over the next 18 months including platform development, employee salary and benefits costs, R&D for new products and services, and marketing activities.
In addition, approximately 30% are intended for working capital requirements such as developing an updated supply chain system to handle increasing volumes due to new customers. The remaining 50% are slated towards mergers & acquisitions to expand your footprint in existing markets.
Navi seeks to become a leader in Cloud technologies and financial technology solutions in India, focusing on expanding movements into global markets. Achieving these ambitious goals will require more than just financial resources; this injection of funds provides the capacity necessary for Navi to make strategic investments in emerging technologies and industries domestically and abroad that will ensure long-term sustainability of their business model.
Valuation
E-Commerce Billionaire Sachin Bansal’s Navi Technologies Limited has announced its intention to go public through $440 million initial public offering (IPO).
The IPO intends to raise enough funds to support Navi’s growth and to provide liquidity to early shareholders and employees. The exact valuation of the company has not yet been determined, but the IPO is expected to be one of the largest venture-backed IPOs in India.
Pre-IPO valuation
The pre-IPO valuation of Navi, e-commerce billionaire Sachin Bansal’s startup, is approximately $440 million. This figure was derived from the information provided to the Securities and Exchange Board of India (SEBI), which noted that Navi has allotted 51,333 equity shares and 6.6448 crore compulsorily convertible cumulative preference shares (CCPS).
Navi’s IPO filing also included detailed information on its shareholders and investors, including Bansal as a majority shareholder with 53.51% equity. Specifically, Bansal has announced a conversion of 614 Equity Shares in his favour out of the 51,332 Equity Shares allocated for this purpose. Other key shareholders are venture capital firm Chiratae Ventures, Axis Bank-backed upstart accelerator Namaa Ventures funded Myra Ventures and Matrix Partners India.
In addition to providing insight into the pre-IPO valuation of Navi and its major stakeholders, SEBI filings also include details about financials from January 1st 2019 to 31st March 2020. Navi reported an accumulated loss of Rs 30.7 crore ($4 million) during this time. It also reported revenues – Rs 1 crore ($132K) during Q1FY21 – indicating that it had yet to turn a profit before filing for its public offering with SEBI.
Post-IPO valuation
Navi’s post-IPO valuation is estimated to be around $4.43 billion, based on the amount of money raised and the number of outstanding shares available. However, the exact figure is unknown as the IPO is still to be finalised. That said, with a claimed transaction volume of over $10 billion in 2020 alone, it is expected that Navi will garner substantial investor interest.
The company has achieved impressive growth since its founding in 2016 and plans to use the funds raised through its IPO to further accelerate expansion efforts. The largest chunk of funds will likely go towards expanding Navi’s platform across geographies, technologies and services and setting up more infrastructure for digital payments and mobile banking products. Post-IPO investments may also include developing new products, entering into strategic partnerships, or acquiring other companies within the fintech space.
The decision by E-commerce billionaire Sachin Bansal for a relatively smaller IPO—just under $440 million in capital—has been met with surprise given Navi’s past dealings with investors. However, it could be argued that this could be an attempt by Sachin Bansal to test the waters ahead of a potential mega-IPO later; a strategy similar to Jack Ma’s approach before Alibaba’s stratospheric success.
Impact
The news that E-Commerce Billionaire Sachin Bansal’s Navi is filing for an IPO (Initial Public Offering) of $440M can significantly impact the Indian e-commerce industry.
The IPO filing details the company’s financials and could spotlight the business operations of Navi and other e-commerce companies. We will assess the potential impact of this move both positive and negative.
Impact on Sachin Bansal’s wealth
The filing of an initial public offering (IPO) by E-Commerce billionaire Sachin Bansal’s Navi Technologies for $445 million marks a major financial milestone in the company’s history. This latest development follows a series of exits and institutional investments over the past year which is helping to drive the rapid growth of Bansal’s business empire.
The IPO will give stock market investors and venture capitalists an opportunity to capitalise on gaining a stake in Navi and its growing business ventures. But, this announcement also serves as a reminder of how far Mr. Bansal has come since his humble beginnings as he increasingly found himself at the forefront of technology and e-commerce in India.
This potential listing could be lucrative for Mr. Bansal because it could provide him with additional capital to invest and expand further his business interests. Moreover, as one of the most remarkable startup success stories, this recently minted billionaire benefits significantly
from having multiple access points to different sources of funds. His wealth increases exponentially as technology disruption becomes more entrenched in India’s commercial landscape.
Impact on the Indian e-commerce industry
Navi’s IPO of $440 million is the second-largest from an Indian startup, signalling tremendous growth potential in the country’s e-commerce sector. The move by Bansal, a major player in the Indian e-commerce market and founder of Flipkart Group, is a groundbreaking event. This development can potentially revolutionise how investors view the rapidly growing Indian e-commerce landscape.
This listing will create significant attention around other big tech companies and startups in India looking to go public. It also opens up a new avenue for global investors and venture capitalists to provide more capital investment into India’s startup ecosystem. This influx of capital could help create a robust infrastructure to propel numerous businesses and prepare them for public offerings. This event will undoubtedly change India’s technology landscape while transforming various startups into thriving corporations.
In addition, this listing could also spur increased collaboration between other enterprises that are involved in this domain either directly or indirectly such as payment providers, logistics firms, etc., ultimately making it conducive for customers’ overall satisfaction and creating more opportunities for innovation and creativity within the Indian economy as a whole.
This move will further cement Bansal’s commitment to spearheading India’s startup revolution while facilitating another milestone in his illustrious career as an entrepreneur.
