Navi’s Solo Run Ends

For nearly eight years, Sachin Bansal has strived to establish Navi without having to answer to institutional investors. With more than $400-450 million from his Flipkart exit proceeds, Bansal invested heavily in the financial services venture, believing that technology, cheap capital, and a full-stack approach to finance could make Navi much more than a digital lending company.

Dutch investment giant Prosus made a significant $100 million investment in Navi on August 19, signaling a vote of confidence in Bansal's vision. However, the industry and certain media reports suggested the deal might have happened at a lower valuation, dropping from nearly $2 billion to $1.3 billion. While Prosus' investment might seem like a validation for Navi, which has seen its lending AUM cross ₹13,000 crore and its UPI business become the country's fourth-largest UPI app, the overall numbers tell another story.

Navi's consolidated loss widened sharply in FY26 to ₹466 crore, up from ₹126 crore in FY25, largely due to investments in UPI and newer businesses. NPA ratios remained high, with impairment costs on financial instruments ballooning in FY25, as the company poured resources into the payments sector to gain UPI market share in FY26.