Navi Finserv, a lending firm headed by Flipkart co-founder Sachin Bansal, raised $38 million from JP Morgan.

The Bengaluru-based business intends to use the money it has raised to increase the scope of its online lending operations.

With regard to the Pass-Through Certificate (PTC) transaction, which was made especially for the personal loan market, this investment represents one of JP Morgan’s initial securitization agreements in India.

The transaction involves pass-through certificates (PTCs) backed by a pool of unsecured personal loans originated and serviced by Navi Finserv. PTCs are financial instruments that allow holders to receive interest payments. 

This marks JP Morgan’s first PTC transaction in India’s fintech sector, signifying its entry into the digital lending space.

Sachin Bansal, Executive Chairman and CEO of Navi Finserv said, “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.”

Kaustubh Kulkarni, Senior Country Officer for India and Vice Chair for Asia Pacific at JP Morgan said, “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.”

Before this transaction, Navi Finserv had raised Rs 525 crore from public NCDs in March and Rs 150 crore from private NCDs in May. 

Navi decided against going public despite having prepared for an IPO and having filed a draft red herring prospectus in March 2022 because of unfavourable market conditions.

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