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Navi Raises $100 Million From Prosus At A $1.3 Billion Valuation

Indian fintech company Navi has secured $100 million from Prosus, marking the first institutional investment in the eight-year-old startup founded by Flipkart co-founder Sachin Bansal.

The investment values Navi at around $1.3 billion, according to people familiar with the deal. That is below the roughly $2 billion valuation the company reportedly sought when it began exploring external funding in 2024.

Bansal launched Navi in 2018 after leaving Flipkart following its acquisition by Walmart. The company offers digital payments, lending, insurance and mutual fund services, and Bansal has invested hundreds of millions of dollars of his own money into the business.

Funding Comes Ahead Of Potential IPO

The Prosus investment comes as Navi prepares for a potential public listing. The company is reportedly considering an IPO that could raise around ₹30 billion ($314 million). Navi had previously filed plans for a $440 million IPO in 2022, but dropped them the following year as market conditions weakened.

The latest investment is subject to regulatory approvals and other customary closing conditions.

Navi Expands Its Fintech Business

For the financial year ended March 2026, Navi reported revenue of ₹30.91 billion ($323 million), while its net loss increased to ₹4.66 billion ($48.7 million).

Its payments app is now India’s fourth-largest UPI platform, behind PhonePe, Google Pay and Paytm. In July, Navi processed more than 947 million UPI transactions worth ₹483.18 billion ($5.05 billion), according to data from the National Payments Corporation of India.

Navi’s lending arm, Navi Finserv, has more than ₹130 billion ($1.4 billion) in assets under management. The company says it serves hundreds of millions of users across India and reached consolidated profitability in the fourth quarter of fiscal 2026.

Bansal described Prosus’ investment as a strong endorsement of Navi’s long-term ambitions and said the company valued the investor’s experience in scaling technology businesses.

AI Is Everywhere, But Consumers Are Growing More Skeptical

AI is advancing rapidly, but public enthusiasm is moving in the opposite direction. Recent surveys show that more Americans are becoming concerned about the technology, while growing opposition to data centers is turning AI’s social acceptance into a business and political challenge.

A Pew Research study found that 52% of Americans are now “more concerned than excited” about the growing use of AI in daily life, up from 37% in 2021. A May Economist/YouGov poll also found that more than 70% believe AI is developing too quickly.

The political backlash is becoming harder to ignore. Axios reported that the National Republican Senatorial Committee warned major AI companies that data center projects could hurt Republican candidates in a key Ohio election.

AI’s Growing Reputation Problem

Public concern is also showing up among younger Americans. A CNBC poll found that most respondents aged 18 to 34 did not trust nine leading AI executives to act responsibly on AI.

For many consumers, AI is increasingly associated with chatbots, AI-powered search and features appearing inside everyday products, rather than with major improvements to their lives. Google has transformed Search with AI, while companies are adding AI to products ranging from email to televisions.

At the same time, people are hearing about AI being used by students to cheat, while companies face disputes over copyrighted material used to train models and generate art, music, video and writing.

That combination is creating a difficult perception: consumers are being asked to accept the disruption caused by AI without necessarily seeing enough personal benefit in return.

Data Centers Add To The Backlash

The problem extends beyond software. Tech companies are spending enormous sums building AI data centers, but communities are increasingly pushing back over issues including electricity demand, water use and infrastructure.

According to The Wall Street Journal, companies are responding with additional incentives such as employment commitments and investments in local infrastructure. One Louisiana project even included $50,000 bonuses for teachers.

Meanwhile, some consumers are gravitating toward technology that feels deliberately less connected. Young people are showing renewed interest in dumbphones, point-and-shoot cameras, cassette players and CD players. AI-free classic iPods are also attracting attention, while offline hobbies and in-person activities are gaining popularity.

The Industry Is Starting To Take Notice

Some technology executives believe the backlash is partly a communication problem. Others are increasingly acknowledging that consumers may understand AI perfectly well but simply don’t consider its current benefits worth the trade-offs.

Airbnb CEO Brian Chesky recently said on a podcast that the industry needs to build products that ordinary people genuinely value, rather than focusing primarily on AI itself.

Anthropic CEO Dario Amodei similarly described negative perceptions of AI as a “big problem” and a “crisis of trust” in a post on X. In his view, the strongest response would be for AI companies to actually deliver on their biggest promises, including breakthroughs that could significantly improve people’s lives.

For an industry that has attracted hundreds of billions of dollars on the expectation that AI will transform everyday life, technological progress alone may no longer be enough. The bigger challenge could be convincing people that they are actually better off because of it.

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