Navi Finserv Pvt Ltd, a unit of Sachin Bansal-led Navi Technologies, has closed a $38-million personal loans securitisation deal with JP Morgan.
Navi Finserv, which offers digital personal, housing, and property loans, said the transaction is structured in the form of pass-through certificates (PTC) that will be backed by a pool of unsecured personal loans, originated and serviced by Navi Finserv.
The company expects to use the funds to expand further and grow its digital personal loans business.
Digital lending is accelerating in India and constitutes a significant portion of the overall Indian fintech market. Market share is expected to rise to 60% of the total fintech market by 2030, fuelled by increasing smartphone penetration, Internet usage, and the need for faster and convenient loan disbursals.
Navi’s deal with JP Morgan is the bank’s first PTC transaction in the fintech space in India and the first unsecured personal loans-backed PTC transaction in India.
“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 & risk management,” said Kaustubh Kulkarni, Senior Country Officer, India, and Vice Chair, Asia Pacific, at JP Morgan.
After moving out of Flipkart, which was acquired by US retail giant Walmart in 2018, Sachin Bansal, along with Ankit Agarwal, founded Navi in 2018.
