The competition watchdog CCI has given its consent to the proposal by the Dutch investment group Prosus to acquire a stake in the fintech company Navi Ltd, which is headed by Sachin Bansal. This decision paves the way for the investment group to strengthen its presence in India's digital financial services sector.
The regulator stated in its announcement that the proposed deal involves the acquisition of certain share packages in Navi Ltd (the target company) by MIH Payments Holdings BV (the acquiring party).
The Competition Commission of India (CCI) officially confirmed the approval of this transaction. The watchdog also specified that MIH Payments Holdings BV does not engage in any activity other than holding investments in portfolio companies operating in India.
Prosus is a global consumer internet group and one of the world's largest technology investment companies. This group is majority-owned by the South African multinational media company Naspers.
Navi, based in Bengaluru, is the holding company of Navi Group, which Bansal founded in 2018 after leaving Flipkart, which was sold to Walmart. The fintech company offers a variety of financial services, such as insurance, lending, digital payments, and mutual funds.
In August, Navi announced it had raised $100 million from Prosus, marking the company's first round of institutional capital raising and strengthening its position in its drive to scale its digital financial services business. Deals exceeding a certain threshold require regulatory approval to control unfair business practices and promote fair competition in the market.