Navi Finserv closes $38 mn personal loan securitisation deal with JP Morgan

Navi Finserv, the non-banking financial company (NBFC) arm of Navi Technologies, on Tuesday announced that the company had closed a $38 million personal loans securitisation deal with US-based J.P. Morgan.

The Bengaluru-based company will use the funds to expand and grow its personal loans business.

The transaction between the two firms, structured in the form of pass-through certificates (PTC), will be backed by a pool of unsecured personal loans. It will be originated and serviced by the NBFC.

“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,” the company said in a statement.

The parent firm Navi has raised $427 million in funding to date, according to data from market intelligence platform Tracxn.

“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 J.P. Morgan even further in the future,” said Sachin Bansal, Executive Chairman and chief executive officer (CEO), Navi Finserv.

The fintech company is looking to bank on the growth of digital lending 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 and risk management,” said Kaustubh Kulkarni, Senior Country Officer, India and Vice Chair Asia Pacific, J.P. Morgan.

Navi Technologies was co-founded by Sachin Bansal and Ankit Agarwal in December 2018.