Navi Technologies, a fintech startup founded by Sachin Bansal, has started laying off employees across all departments. According to sources, around 200 employees have been terminated, with the product development and management sections being the most affected, accounting for 60-70% of the layoffs. The retrenchment is expected to have a major impact on the company’s product, analytics, and technology functions. In addition to the layoffs, several employees in product and technology roles have resigned over the past few months due to management challenges. The company’s response to the layoffs attributes them to ‘performance appraisals.’ However, Navi Technologies also expects to continue hiring and has multiple open positions. This year, they plan to onboard more than 150 campus hires in August.
The layoffs come at a time when Navi Technologies has delayed its proposed Rs 3,350 crore IPO, despite receiving approval from the Securities and Exchange Board of India (SEBI). The delay in the IPO listing is attributed to the ongoing correction in global markets. Navi Technologies, founded by Sachin Bansal in December 2018 after his exit from Flipkart, has various subsidiaries under the Navi Group. These include Navi Finserv, a platform for personal and home loans, Navi Asset Management Company for mutual funds, Navi General Insurance for health insurance, and Chaitanya Micro Finance for microfinance and lending.
The Navi Group faced challenges last year, resulting in write-offs amounting to approximately Rs 140 crore. Additionally, Navi received a setback when the Reserve Bank of India rejected Chaitanya India Fin Credit’s application for an ‘on tap’ banking license, one of the banking aspirations of the Navi Group. Out of the 11 applications received, the central bank rejected six, impacting Navi’s plans for expansion in the banking sector.
Overall, the layoffs and delayed IPO indicate a period of transition and changes within Navi Technologies, as the company adjusts its strategies and operations in response to market conditions and other factors.
