What do we know about the Navan IPO?
Navan, the online travel management company formerly known as TripActions, confidentially filled for an IPO in September 2022, as reported by Business Insider. While it’s been some time since that reporting, Business Insider has recently reported another insider tip that Navan is readying up to go public. The confidential source told the new site that Navan CEO Ariel Cohen is looking to take the company public sometime late April 2024.
The insider added that Cohen wants to improve financial metrics including gross margins before taking the company public. Since the filing in 2022, Navan has certainly made moves to boost its profile with multiple acquisitions and its rebrand from TripActions in February 2023. This all comes after the travel company suffered greatly during the Covid pandemic when recreational travel became near impossible.
The IPO market has also suffered in recent years as global economies struggle to stabilise and public exchanges saw significantly fewer listings. In recent months there have been several successful IPOs by notable start-ups and technology companies including Instacart, Klaviyo and ARM. Signs that the IPO market is warming up could be an influence in Cohen’s decision to finally move on the confidential listing.
It's unknown what exchange the Palo Alto-based company plans to list on and whether Navan intends to pay shareholder dividends. The company is working with Goldman Sachs on preparations, according to The Information.
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How to trade the Navan IPO
Once Navan has been listed, you’ll be able to trade its shares in the same way as any other stock on the market.
In the meantime, you can trade shares with FOREX.com in these easy steps:
- Open a FOREX.com account, or log in if you’re already a customer
- Search for the company you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
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What is Navan?
Navan, formerly TripActions, is an online travel management company that helps corporate clients manage travel: booking trip reservations, tracking travel itineraries, managing expenses and more.
Navan uses volume discounts when sourcing travel from third-party sources like Priceline, Booking.com and Expedia to source the best options depending on company type and budget. Navan also has its own rewards system and automated expense management which allows executives to oversee all elements of corporate travel in one platform.
Customers of Navan can use the business’s own travel payment cards and lines of credit, or link existing Visa and Mastercard accounts, to track spending, control purchases and earn rewards points.
According to the company website, Navan has about 2,000 employees and has worked with over 9,000 companies including Databricks, Lyft, Adobe and Netflix.
How much is Navan worth?
Navan’s most recent valuation is about $12 billion according to Business Insider. Navan has undergone seven rounds of financing, raising about $1 billion in equity funding and $1.2 billion in debt financing according to Crunchbase.
Andreesssen Horowitz, Lightspeed Venture Partners and Greenoaks Capital are all investment firms that have led funding rounds for Navan. Navan’s most recent funding round was a Series G occurring in October 2022 which valued the company at $9.2 billion.
Is Navan profitable?
Navan is not profitable, according to Business Insider, although the company has rapidly increased annual revenue through product expansions and acquisitions.
Navan’s most recent reported annual revenue is $300 million for 2022 after reporting no revenue during the Covid pandemic as travel restrictions spread across the globe. Contrary Research, a research firm focused on private tech companies, projects Navan to achieve an annual revenue of $1 billion in 2024.
How does Navan make money?
Navan makes money primarily through monthly subscription fees customers pay, scaled to the number of users each company client has using the product. In addition to subscription fees, Navan receives revenue from interchange of its corporate credit cards.
What is Navan’s business model?
Navan separates its product offerings into two categories: travel and expense management. The addition of an expense management service and the Navan Liquid corporate card has helped propel the business to new heights. After its launch, Navan reported a 500% growth in transaction value for 2021.
Navan has also implemented an aggressive acquisition strategy to expand into international markets. Since 2021, Navan has acquired four travel management companies in Europe and India:
- Reed & Mackay – Spain
- Fresia – Scandinavia
- Contravo – Germany
- Tripeur – India
Who are Navan’s competitors?
Navan has several competitors who have followed the company’s lead to combine travel, expense and card management in one service. Brex and Ramp, two companies offering corporate credit cards and spend management software, have launched travel management software in recent years.
American Express Global Business Travel (Amex GBT) is one of the most dominant players in the industry and focuses on clients who spend over $1 million a year on flights or $10 million a year on business travel. Amex GBT is also present in over 140 countries, making it a strong incumbent challenger to Navan’s recent expansion efforts.
Navan management team
The Navan management team is lead by co-founders Ariel Cohen and Ilan Twig. Read the full list of executives below:
- Ariel Cohen – CEO & Co-founder
- Ilan Twig – CTO & Co-founder
- Ram Bartov – CFO
- Grant McGrail – CRO
- Nina Herold - COO
- Fred Stratfort – CEO of subsidiary Reed & Mackay
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