Navi Technologies, the financial services startup has turned profitable in the fiscal year 2021, recording a consolidated profit of Rs 71 crore, according to the regulatory filings. The company experienced a loss of Rs 8 crore in the previous fiscal year.
The insurance aggregator startup’s net revenue increased by 252 percent from Rs 221 crore in FY20 to Rs 780 crore in FY21, as the company’s business increased its reach and the demand for financial services via online channels increased as a response to the pandemic. Although Navi managed to slash its other income from Rs 22 crore in FY20 to Rs 9 crore in FY21, its revenue from operations jumped to Rs 779 crore in FY21 from Rs 198 crore in FY20.
Meanwhile, the startup’s expenses increased by 208 percent in fiscal year 21. Navi made total expenses of Rs 673 crore in FY21, up from Rs 218 crore in FY20. Navi’s depreciation, depletion, and amortization expense increased 355 percent to Rs 40 crore in FY21 from Rs 8.9 crore in FY20. Employee benefit costs increased to Rs 169 crore in FY21, up from Rs 61 crore in FY20.
Navi Technologies, founded by Sachin Bansal and his former Flipkart coworker Ankit Agarwal in 2018, is a general insurance, lending, mutual funds, and microfinance startup. Navi introduced a monthly subscription EMI-based insurance package in June of this year, rather than the conventional annual premium that insurance providers offer.
During the launch of this EMI-based insurance offering, the company stated that insurance coverage can be purchased with EMIs starting as little as Rs 240 per month. Navi provides individual and family health insurance policies starting from Rs 2 lakh to Rs 1 crore.
Earlier this year, it also penetrated the mutual fund sector. The company launched Navi Nifty 50 Index Fund, its first mutual fund (MF) offering. Market regulator Securities and Exchange Board of India (SEBI) has also granted the company a stockbroking and investment advisory license, according to the regulatory filing. Navi is also seeking for the Reserve Bank of India (RBI) to grant it a universal banking license in order to incorporate a bank from the scratch using the in-house technological stack.
Currently, Sachin Bansal-led startup faces stiff competition with insurtech majors which include Policybazaar, Digit, and recently turned unicorn Acko, it also competes in the mutual fund sector with Groww, Paytm, Upstox, and Zerodha.