Sachin Bansal plans to acquire Aviva Life Insurance Company

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Navi Technologies led by Sachin Bansal has reported the acquiring of Aviva Life Insurance company which is a joint venture between UK-based insurer Aviva and Dabur Invest Corp, Indian consumer goods company. Bansal is carrying with advanced talks with Aviva to acquire the loss-making joint venture. Similarly, it is also planning to buy out the Dabur family’s investment in the venture for around INR 1,000 Cr to INR 1,200 Cr Earlier, Aviva Life Insurance Company was originally at 26:74 alliance. But in May 2016 Aviva Plc acquired an additional 23% stake from Dabur Invest Corp at an amount of 940 Cr. Now Aviva Plc holds 49% stake at an amount of INR 4,087 Cr.

Aviva started a process to exit its operations in Asia, valuing it at $2 Billion. The company was also involved in JP Morgan to facilitate the take over of the Indian franchise. But there is no update in the above. ET reported that people are aware of the discussions going at the beginning of the year and had getting faster in the last few months. In a report published in September, the author talked about the strategies of Sachin Bansal in the decision on the acquisition of both Flipkart and now Navi. The author reported that while acquiring Flipkart were to plainly fast track the growth of the business whereas in the case of Navi is to satisfy the regulatory requirements of banking.

The report clearly shows that  India has a $1.86 Trillion market size for BFSI and it has more than a $64 Billion market size in the e-commerce sector. As the competition is high, it needs to face several challenges. The fall of several public sectors and private sector banks have worried investors as well as customers, though the industry is highly safeguarded by capital and regulatory requirements for entry into the industry. In January 2020, Navi Technologies has acquired Mumbai-based DHFL General Insurance for ₹100 Cr. The company is said to be in talks to acquire private life insurance companies Liberty General Insurance Ltd, Future General Life Insurance, and DHFL Pramarica Life Insurance to expand its loan offerings. In FY2020, Navi Technologies has reported a total income of ₹221.89 Cr with an expense of ₹219.96 Cr. The fiscal year ended with a loss of ₹8 Cr.

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