Sachin Bansal’s financial services platform Navi Finserv has closed a $38 million personal loans securitisation deal with JP Morgan.
Securitisation is the process in which certain types of assets—in this case, personal loans—are pooled so they can be repackaged into interest-bearing securities.
According to the company statement, the transaction structured in the form of pass-through certificates (PTC) will be backed by a pool of unsecured personal loans, originated and serviced by Navi Finserv. This is JP Morgan’s first pass-through certificate transaction in the fintech space in India and the first unsecured personal loans backed PTC transaction in India, it stated.
“We are happy to announce our partnership with JP Morgan and the successful completion of the PTC transaction. 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,” said Sachin Bansal, Executive Chairman & CEO, Navi Finserv Limited.
The deal will help Navi Finserv access additional liquidity, allowing it to grow its digital personal loans business.
Earlier in May, the company had reportedly raised Rs 150 crore through non-convertible debentures (NCDs), at an issue price of Rs 1,00,000 each, through private placement.
“We are excited to partner with Navi Finserv to provide tailored solutions as they grow their business. 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,” added Kaustubh Kulkarni, Senior Country Officer, India & Vice Chair Asia Pacific, JP Morgan.
Navi Finserv, which originally planned to go for an IPO, had filed a draft red herring prospectus in March 2022. However, it did not proceed to list due to unfavourable market conditions.
