Sachin Bansal’s Navi app among the top three digital lenders in India
Just within three months of its launch, Flipkart co-founder Sachin Bansal’s financial services start-up, Navi app (Navi’s digital lending app) has emerged as one of the largest such platforms in India.
In a fireside chat with Sequoia Capital India’s MD Rajan Anandan in the Global Fintech Fest, Bansal said there is a huge unmet demand for credit and their digital lending platform has done well despite the Covid-19 pandemic.
“If you are a middle-class person or an owner of an SME, you are not served by most of the financial services firms. The reason is the cost of operations is very high. No company is thinking in terms of next billion users,” said Bansal. “We have done well in the past three months. We had some target and I think, we are going to blow that up,” he added.
The Navi lending app, launched in May, provides instant loans of up to Rs 5 lakh, with repayment tenures of up to 36 months. The process of loan is carried out through digital and contactless operations.
Bansal also said customers of microfinance institutions are also adopting digital lending solutions at a faster pace.
“In the next five years, everyone will have a smartphone. So, the adoption of digital services is going to be increased manifold. We have seen early traction in recovery through the use of digital means,” he said.
Last year, Bansal has ventured into the microfinance sector through picking up a majority stake in Chaitanya Rural Intermediation Development Services.
Bansal has also forayed into insurance space after acquiring DHFL General Insurance from Wadhawan Global Capital for Rs 100 crore. “We also offer health insurance and motor insurance products. I think insurance space needs to be radically simplified for people,” he said.