Navi Technologies to buy DHFL General Insurance

Sachin Bansal-led Navi Technologies will acquire DHFL General Insurance Ltd (DHFLGI) for an undisclosed amount.

Sachin Bansal-led Navi Technologies will acquire DHFL General Insurance Ltd (DHFLGI) for an undisclosed amount.

DHFLGI, Wadhawan Global Capital Ltd, and Navi Technologies had entered into a share purchase agreement dated January 2, 2020, for the transaction, according to a notice in a newspaper.

"...the acquirer (Navi) proposes to acquire 19,00,50,000 equity shares representing 100 percent of the paid-up equity share capital of the company (DHFLGI) from the seller by way of secondary transfer of shares," it added.

Flipkart Co-founder Sachin Bansal

The notice said DHFLGI has made an application to the Insurance Regulatory and Development Authority of India (IRDAI) seeking its approval for the proposed transaction.

It added that the proposed transaction is scheduled to be consummated after the expiry of 15 days from January 8, subject to the satisfaction of certain conditions precedent including the receipt of IRDAI approval.

Earlier in December 2019, Navi acquired MavenHive, a Bengaluru-based technology consulting firm, to further its product development initiatives.

The Mavenhive team, along with its founders have joined Navi, as a part of this transaction. 

Founded by Bhavin Javia and Anandha Krishnan, MavenHive consults companies converting their ideas into high-quality software. The startup boasts of a tech clientele which includes names like Flipkart, Gojek, Grasshopper, Scripbox, among others, to achieve major milestones in their product journeys.

Following his departure from Flipkart, Sachin Bansal has also been making investments in various startups such as Ola, Bounce, KrazyBee, to name a few.

In November 2019, Sachin Bansal had made a fresh fund infusion of Rs 888.5 crore into his investment arm, Navi Technologies.

According to regulatory filings, Sachin was allotted 6,83,45,451 shares in Navi Technologies at Rs 130, including Rs 30 as premium. Navi Technologies was earlier known as BAC Acquisitions.

Earlier in October 2019, Navi had acquired a majority stake in Chaitanya Rural Intermediation Development Services (CRIDS), a company which runs the micro-finance institution Chaitanya India Fin Credit (CIFCPL).

Sachin had invested Rs 739 crore in CRIDS. Following the transaction, he became the CEO of the company.

The Bengaluru-based micro-lender was founded by Anand Rao and Samit Shetty. It provides access-to-credit for the underbanked population, and offers loans for two-wheelers, housing, small business, and education. CRIDS has operations in five states — Karnataka, Bihar, Jharkhand, Maharashtra, and Uttar Pradesh.

(Edited by Suman Singh)

(Disclaimer: Additional background information has been added to this PTI copy for context.)