Navi Technologies Initiates Layoffs Ahead of IPO, Approximately 200 Employees Affected
- ByStartupStory | July 13, 2023
Navi Technologies, a company led by Sachin Bansal and preparing for its Initial Public Offering (IPO), has reportedly laid off approximately 200 employees across different departments, according to sources familiar with the matter. The layoff process began a few weeks ago, with additional job cuts anticipated in the near future.
Sources indicate that the impact of the layoffs has been significant, particularly in the product development and management section, where approximately 60-70% of employees have been affected. Further workforce reductions are expected to take place this week, as confirmed by one of the sources. Despite these reports, Navi Technologies has not responded to inquiries seeking clarification on the matter.
As stated in Navi’s draft IPO paper, the company employed around 4,680 individuals as of December 31, 2021. Last year, the market regulator, the Securities and Exchange Board of India (SEBI), granted approval for Navi Technologies’ IPO, allowing the company to raise funds through a fresh issue worth Rs 3,350 crore.
Under the proposed IPO plans, Navi Technologies intends to invest Rs 2,370 crore in Navi Technologies (NFPL) and an additional Rs 150 crore in Navi General Insurance Limited (NGIL). The remaining funds will be allocated for general corporate purposes, as previously outlined by the company. Notably, the company’s founder, Sachin Bansal, who has already invested approximately Rs 4,000 crore in Navi Technologies, will retain his stake of about 97.77% in the IPO, as stated in the Draft Red Herring Prospectus (DRHP) filed with SEBI in March 2022.
The layoffs within Navi Technologies come at a crucial time as the company gears up for its IPO, highlighting the challenges and adjustments faced during the transition. The company’s future actions will be closely monitored by industry observers and potential investors as they assess the impact of the layoffs on Navi Technologies’ overall growth and long-term prospects.
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