Sachin Bansal's Navi laysoff 200 employees despite being profitable

Sachin Bansal-led Navi, a fintech startup providing lending services, has reportedly laid off around 150 to 200 employees across various departments.

According to a Business Today report, The layoffs affected employees working in tech, product, and analytics. Despite receiving standard severance packages, the employees were reportedly unaware of the impending job cuts.

The development comes after Navi's decision to postpone its initial public offering (IPO) due to the challenging market conditions. The company had initially filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) in March of the previous year, aiming to raise up to Rs 3,350 crore.

In response to the layoffs, a spokesperson from Navi issued a statement: "Navi conducts performance appraisals twice a year, which results in expected departures from the company. However, Navi continues to have multiple open positions and the company is expected to continue hiring many new employees this year, including a batch of 150+ campus hires who will be joining in August.”

The statement appears to suggest that despite the recent layoffs, Navi remains committed to its growth and expansion, and it plans to replenish its ranks with new hires later this year.

Navi is a Sachin Bansal-founded fintech startup that provides home loans, personal loans, mutual funds, and health insurance to customers. 

Earlier this week, Navi announced it is raising Rs 500 crore through the issuance of secured and redeemable non-convertible debentures (NCDs), making it the second debt issue after it raised about Rs 600 crore in May 2022.

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