Sachin Bansal’s Navi operating revenue leaps 17.5X to Rs 222 Cr in FY20


Sachin Bansal’s Navi Technologies (former BAC Acquisitions) has been lending aggressively when the majority of consumer-facing lending platforms aren’t. The company had disbursed a loan over Rs 130 crore between May and October this year. While the company’s loan book may touch over Rs 400 crore by the end of the ongoing fiscal, Navi demonstrated decent financial performance in FY20.

In its first full year of operations, Navi has posted a consolidated total income of Rs 222 crore in FY20, registering a 17.5X jump as compared to income of Rs 12.7 crore it earned in FY19. It’s worth noting that Navi was operational only for three-four months in FY19.

Around 72% of this income has been generated through Navi’s NBFC business via interest income and related fees. Incomes through the insurance business and advisory accounted for the remaining 8% and 20% respectively. 


Employee benefits accounted for 28% of overall expenses. The company has spent Rs 61.6 crore on salaries and other welfare schemes on employees in FY20. Interest expenses and impairment of financial assets amounted to Rs 37.02 crore and Rs 37.02 crore respectively. 

Miscellaneous expenditure of Rs 33.5 crore made up 15.3% of the total expenses.

Throughout FY20, Navi spent nearly Rs 350 crore on the acquisition of subsidiaries and legal charges added another Rs 30.6 crore on the expense sheet. Navi incurred a total expenditure of nearly Rs 219 crore while the net cash outflows from operations stood at Rs 270 crore. Since this was the first full year of operations at the company, expenses from FY19 are not comparable.

Importantly, profit before taxes have reduced by 32.3% to Rs 2.92 crore in FY20 as compared to Rs 4.31 crore but the company maintained a healthy EBITDA margin of 22.02% on its collections during the fiscal ended in March 2020. Tax expenditure accounted for another Rs 21.51 crore and the company’s loss for the year stood at Rs 8.07 crore.

The company fueled its acquisition spree through the capital it raised from backers, primarily Bansal himself. It collected Rs 1,424 crore through proceeds of the issue of shares while it borrowed another Rs 647.8 crore in FY20. During the same period, total assets increased 84X to Rs 5,101 crore at the end of FY20 from Rs 60.7 crore in FY19.

Navi has kept its purse strings tight with controlled expenditure during FY20 which can change when it deploys the capital it has raised from multiple investors and 54% of the assets are held as current financial investments, FY21 will be crucial as these assets are deployed in an economy reeling from the harrowing effects of the global pandemic. 

Navi offers loans for tenure ranging from three to 36 months. Apart from consumer loans, Navi Finserv also deals in two-wheelers, home, small business and educational loans. The company had raised Rs 3,211 crore from Bansal and Gaja Capital.

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