In 2007, one entrepreneur changed the way Indians shop
After making Flipkart India’s biggest billion dollar startup, he’s disrupting multiple industries now
Here’s how Sachin Bansal is building a profitable Fintech at Navi Technologies: A🧵
After making Flipkart India’s biggest billion dollar startup, he’s disrupting multiple industries now
Here’s how Sachin Bansal is building a profitable Fintech at Navi Technologies: A🧵
What is Navi exactly?
Navi is a financial services company providing a suite of services like loans, mutual funds, insurance etc. through their app.
Navi is a financial services company providing a suite of services like loans, mutual funds, insurance etc. through their app.
What makes them special?
They focus more on the quality of the product and customer experience rather than acquiring more customers.
You see, in India the state of financial services is still so bad, that anyone who can build more trust can win.
They focus more on the quality of the product and customer experience rather than acquiring more customers.
You see, in India the state of financial services is still so bad, that anyone who can build more trust can win.
Private Banks and NBFCs focus on the higher income customers and give them a premium low-friction experience.
Middle class gets left out in the process. Navi targets them.
Middle class gets left out in the process. Navi targets them.
Navi is not like other Fintechs. It’s not another distribution play.
That’s because Navi wants to be an end to end service.
That’s because Navi wants to be an end to end service.
A lot of times when other fintech startups become distributors, the further services becomes the bank/NBFC/insurer’s responsibility and the distributor can do nothing about it.
So, if the customer’s insurance claim gets rejected for wrong reasons, the distributing Fintech can do nothing about it.
And this destroys the customer experience.
Navi wants to control every part of the process therefore they have everything in-house.
And this destroys the customer experience.
Navi wants to control every part of the process therefore they have everything in-house.
We have to understand that Navi is solving for the incompetence of the existing financial insitutions which are unable to provide quality service to their customers.
So if they just distribute they add to the incompetence.
So if they just distribute they add to the incompetence.
And that becomes a key differentiator for Navi.
Navi is trying to fundamentally change the system, not be a part of it.
Navi is trying to fundamentally change the system, not be a part of it.
What are they doing differently than banks, NBFCS and insurance players?
They are simple!
While most NBFCs and Banks make their products from the point of view of taking more profits home, Navi’s approach is customer first!
They are simple!
While most NBFCs and Banks make their products from the point of view of taking more profits home, Navi’s approach is customer first!
If the customer is happy, he’ll pay them and he’ll recommend to many more people.
They made it extremely simple to take loans on the app, their insurance product is already a disruptor.
It has made insurance terms and conditions super simple for the customers.
They made it extremely simple to take loans on the app, their insurance product is already a disruptor.
It has made insurance terms and conditions super simple for the customers.
In traditional insurers, the terms are kept to safeguard the company, in Navi the terms are again “customer first”
When a customer is seeking insurance claim that’s a low moment in his life.
And when their claim gets rejected, they badmouth the company.
When a customer is seeking insurance claim that’s a low moment in his life.
And when their claim gets rejected, they badmouth the company.
Now the company might have gained some money out of this, but they forgot the long term customer loyalty and trust erosion.
That’s where Navi comes and sweeps away the market.
That’s where Navi comes and sweeps away the market.
They are combining the knowledge of consumer tech startup which Sachin has from Flipkart, and applying that to the banking and insurance industry.
What are the problems they are solving for?
Most startups which are trying to become aggregators of insurance players are basically building upon the existing systems in the market.
Most startups which are trying to become aggregators of insurance players are basically building upon the existing systems in the market.
They might be helping you pick the right insurance for you, but they can’t ensure you’ll get a good service and you’ll get the money if you ever need it.
Similarly most startups which are trying to be NeoBanks are basically front face of traditional banks.
Similarly most startups which are trying to be NeoBanks are basically front face of traditional banks.
They aren’t solving the deep rooted problems in our system which the customers are facing.
Distribution of financial services is a big problem, but there are bigger problems inside the system.
Distribution of financial services is a big problem, but there are bigger problems inside the system.
And Navi is doing all this while not raising too much external capital. Why?
Sachin Bansal started Flipkart with external funding, but during it’s acquisition he was cut away from the company he started.
Sachin Bansal started Flipkart with external funding, but during it’s acquisition he was cut away from the company he started.
External funding might make you lose control of the company and the power to take it in the direction you want.
With his new baby Navi, Sachin wanted full control.
In fact, he has 97% stake in the company and almost all the fund raises have been done by Sachin himself cause…he’s rich!
In fact, he has 97% stake in the company and almost all the fund raises have been done by Sachin himself cause…he’s rich!
Navi is a growing story so we’ll keep taking it up again and again to get deeper into how they are changing India’s financial sector.
Navi is also coming up with it’s IPO. We’ll cover that soon!
And this wasn’t financial advice. Do you own due diligence before investing.
Navi is also coming up with it’s IPO. We’ll cover that soon!
And this wasn’t financial advice. Do you own due diligence before investing.
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