Navi Finserv, a lending startup led by Sachin Bansal, co-founder of Flipkart, has secured $38 million in a significant securitization deal from JP Morgan.
The Bengaluru-based organization intends to leverage the additional capital to expand its digital lending operations.
The investment is one of JP Morgan’s first securitization agreements in India, which involved a Pass-Through Certificate (PTC) transaction specifically for the personal loan space.
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The transaction is supported by a pool of unsecured personal loans that were originated and serviced by Navi Finserv, and it is structured in the form of pass-through certificates (PTC). PTCs are an appealing financial instrument because they allow the holder to receive interest payments.
Navi Finserv had previously raised Rs 150 crore through private non-convertible debentures (NCDs) in May and Rs 525 crore from public NCDs in March, prior to this transaction.
Sachin Bansal, Executive Chairman and CEO of Navi Finserv, said: “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 JP Morgan even further in the future,”
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