Navi Technologies IPO

Digital Revolution: Digitisation has revolutionised the banking and financial services sectors. Navi’s digital first business model is poised to serve the rural and semi urban population with better reach, faster turnaround and better customer experience.

Diversified Product Portfolio: Navi Technologies has a diversified portfolio of offerings including general insurance, personal loans, micro finance, investments and home loans. They are well positioned to fulfill different financial needs of the customers and a diversified revenue model.

End to end Product Ownership: Navi is positioned as an end to end digital ecosystem player with complete control over their product offerings, insurance, lending and asset management. They are not into digital payments space unlike other fintechs, and control the entire process and distribution of their products.

Technological Capabilities: Navi has an in-house full stack technological capabilities and they use in-house data science and machine learning models for risk management, collections and underwriting.

Interest Rate Volatility: Lending business is prone to fluctuations in interest rates, which can impact the loan portfolio, volumes and profitability.

Default Risk: Lending business especially in the small loan portfolio is more vulnerable to default risk. 25% of the company's AUM comes from low income groups and 45% of revenue comes from lending business.

Competition: Fintech sector is highly competitive with new age fintechs, traditional banks and NBFCs, AMCs and foreign players all are in the fray. This creates pricing pressure and risk of losing business to competition.

Unexpected Events: Insurance business is vulnerable to higher claims due to Covid like events which can increase claims and impact profits.