Navi Technologies, the non-banking financial company (NBFC) — dealing in digital loans, home loans, mutual funds, health insurance and micro-loans — is set to lay off at least 100 employees. Some media reports say that up to 200 may be let go, with at least 60 per cent of the product development and management sections being impacted. The firm had a workforce strength of over 4,500 in December 2021.
Founded in 2018, by Sachin Bansal, the founder of Flipkart, the firm had been given the green signal for its initial public offering or IPO, to raise funds through a fresh issue of Rs 3,350 crore.
It plans to put in over Rs 2,000 crore into Navi Technologies and about Rs 150 crore into Navi General Insurance, while the rest is to go into handling other corporate expenses.
The company’s Draft Red Herring Prospectus (DRHP) was filed with the Securities and Exchange Board of India (SEBI) in March 2022, according to which Bansal would not dilute his 97.7 per cent stake in the IPO, having invested about Rs 4,000 crore.
The layoff process, which began earlier this week, has impacted almost all departments. Reports say that no severance was offered to the laid-off employees.
Till 2022, two rounds of appraisals were conducted, in June and December. Only the good performers were given increments, while the others were warned or assigned a time period within which to show improved performance. Layoffs were rare. However, now, the revised policy does not have provisions for severance to those who are terminated due to performance issues in either June or December.
The latest policy also allows for promotions in December only, but layoffs in both June and December rounds.