Sachin Bansal, the co-founder of India’s biggest e-commerce platform Flipkart, is all set to invest a huge chunk in his new financial service. Bansal sold 5% of his stake in Flipkart to American retail giant Walmart for $1 billion. He would be using this money to invest in various fintech ventures in the upcoming years.
Bansal will be investing somewhere between $400-4450 million in his financial business. He has already asked for a universal banking license from the RBI and will obtain it through a step-down subsidiary.
His venture Navi Technologies will start as soon as it gets the necessary approval from concerned authorities.
Key Figures in Navi Technologies
Sachin Bansal founded the Navi Technologies in association with Ankit Agarwal. It aims to provide technology-driven services in banking, finance and insurance sectors. If you are wondering about the key figures in this venture, he has roped in various well-known personalities from the Indian banking sector.
Bansal has got Nachiket Mor, who was a former RBI director and one of the top executives of ICICI bank. Until now, he was the head of the Bill and Melinda Gates Foundation in India.
Moreover, Paresh Sukthankar will also be a part of this venture. He was the former deputy to Aditya Puri, the CEO of HDFC bank. Sukthankar has been associated with HDFC since it began its operations in India in 1994.
Other Major Investments
Sachin Bansal bagged $1 billion after selling his 5% stake in Flipkart. Out of this, he will receive $700-$750 million after the necessary tax cuts. He has already invested about $100 million in Ola and $30 million in e-scooter manufacturer Ather.
Moreover, last year, he infused $100 million in microfinancing company Chaitanya. On top of this, he has poured in $40 million to take over Essel Mutual Funds and DHFL General Insurance as well. After investing $100 million for treasury operations, he has invested the rest of the money in his pet project ‘Navi Technology’.
According to Sachin Bansal, he would be putting all eggs in one basket with his huge investment in Navi Technologies. Bansal also explained why he applied for a universal banking license instead of a small finance bank. Its because he wished Navi to operate through several sectors of the country.
Moreover, he did not fail to mention that investors have been quite open to his new ideas. Bansal did point out that it is beneficial for entrepreneurs to think like a consumer tech companies instead of small finance companies. This will ultimately help them to solve bigger problems within the country and its economy.
He also made a valid remark regarding the economy of the country. Bansal said that if India is to become a $5 trillion economy in the near future, then its GDP-to-credit ratio must move up to 100. According to the latest statistics, the current GDP-to-credit ratio of India stands at 57.
Navi’s Journey so Far
Apart from Bansal’s personal investment, you can expect other external investments as well. The International Finance Corporation or IFC is all set to invest $30 million to acquire a 4.5% stake in Navi. So, Bansal is all set to gather about $150-200 million from external investment.
Bansal took over Chaitanya Rural Intermediate Development Services in 2019 and became the CEO. CRIDS mainly dealt with people of rural areas to help them access the credit market. Its aim is to provide loans for small businesses, education, two-wheelers to people.
CIPCFL, which runs CRIDS, has recently applied for the universal banking license from RBI. With the license in hand, CIPCFL aims to further shorten the gap between the retail sector and the MSME sector. Bansal infused $104 million into Chaitanya, which is roughly INR 739 crore.
Sachin Bansal, an IIT-Delhi graduate, revolutionized India’s e-retail business sphere by co-founding Flipkart. Now, he is expanding his horizon and focusing on financial services. You can expect him to play similar magic and lead a revolution in the financial services sector in India. Whatever be the outcome, Bansal has surely captured the attention of foreign investors. He has also managed to grab the admiration of the young generation in the country and continue to lead them.