Navi Finserv has secured $38 million (approximately Rs 320 crore) from JP Morgan through a securitisation deal. This funding will enhance the company’s digital lending efforts.
This is one of JP Morgan’s first securitisation deals in India involving a Pass-Through Certificate (PTC) transaction in the personal loans sector. The PTC entitles the holder to receive interest payments.
Sachin Bansal, Executive Chairman and CEO, Navi Finserv, stated, “This deal is a significant endorsement of the high quality of our loan portfolio and the consistent growth Navi has achieved over the years. We look forward to further strengthening our relationship with JP Morgan.”
The transaction is supported by a pool of unsecured personal loans originated and serviced by Navi Finserv. The company anticipates that digital lending will account for around 60 per cent of the FinTech market.
Kaustubh Kulkarni, Senior Country Officer- India and Vice-Chair, Asia Pacific, JP Morgan, while commenting on this deal, said, “This transaction marks our entry into India’s high-growth digital lending sector and aligns with our commitment to supporting the innovation economy. We are enhancing our engagement with multiple companies in this space in India, providing them with capital raising and financial solutions, including liquidity and risk management.”
In addition, Navi Finserv had raised Rs 150 crore in May through private Non-Convertible Debentures (NCDs) and Rs 525 crore from public NCDs in March.