TLDR
- Navan priced its IPO at $25 per share on Wednesday night, raising $923 million and valuing the company at $6.2 billion.
- Shares fell as much as 15% in first-day trading on Nasdaq under ticker symbol NAVN, dropping to around $21 per share.
- The IPO valuation represents a roughly $3 billion discount from Navan’s private market valuation of $9.2 billion in October 2022.
- Navan reported trailing 12-month revenue of $613 million, up 32%, but posted a $38.6 million net loss in the July quarter.
- The company’s AI virtual assistant Ava now handles approximately 50% of user interactions on the platform.
Navan began trading on the Nasdaq on Thursday under ticker symbol NAVN. The corporate travel and expense management software company saw its shares sink by as much as 15% in its first day of trading.
Navan, Inc. Class A Common Stock, NAVN
The company priced its initial public offering at $25 per share on Wednesday night. This placed the valuation at $6.2 billion and raised $923 million for the Palo Alto-based firm.
The offering price sat at the midpoint of Navan’s proposed range. But investor enthusiasm quickly faded once trading began.
Shares dropped to approximately $21 in early trading. This decline pushed the company’s market capitalization down to around $5.2 billion.
The IPO represents a steep discount from where private investors last valued the company. In October 2022, Navan commanded a $9.2 billion valuation during a $300 million funding round.
The company was then known as TripActions before changing its name to Navan in February 2023. CEO Ariel Cohen and co-founder Ilan Twig launched the business in 2015.
Navan positions itself as an all-in-one super app for corporate travel and expenses. The company aims to replace what it describes as clunky legacy tools and fragmented workflows.
The customer roster includes Geico, Zoom, Lyft, OpenAI, Unilever, Anthropic, Adobe, Christie’s, and Blue Origin. Navan serves over 10,000 customers ranging from large enterprises to companies with as few as 10 employees.
Financial Performance and Growth Metrics
Navan reported trailing 12-month revenue of $613 million, representing 32% growth. Gross bookings reached $7.6 billion, up 34% over the same period.
The July quarter showed revenue of $172 million, up about 29% year over year. However, the company recorded a $38.6 million net loss during that period.
For the full fiscal year, Navan posted a net loss of $181 million on $537 million in revenue. Revenue grew 33% year over year, but the company remains unprofitable.
First-half 2025 losses increased to $100 million. This fell short of the company’s previous timeline for reaching profitability.
Cohen claims Navan reduces booking time for complex business trips from 45 minutes to seven minutes. The company reports delivering 15% savings for customers using traditional methods.
Technology and Market Position
The platform features a virtual assistant named Ava that handles approximately 50% of user interactions. Navan built a proprietary AI framework called Navan Cognition to support the platform.
Users can process credit card swipes, corporate calendar items, and receipt photos through AI analysis. Cohen says this eliminates long hold times with travel agencies during disruptions like natural disasters or airport delays.
The company faces competition from niche players like Expensify and enterprise giants including Oracle and SAP. Expensify stock has fallen to under $2 per share from its $27 IPO price in 2021.
Venture investor Oren Zeev, who runs a one-person VC firm, held a stake worth over $1 billion at the IPO price. He first invested in the founders in 2013, two years before Navan launched.
Navan’s debut marks the largest IPO since Klarna Group raised nearly $1.4 billion in early September. October IPO volume reached $4.4 billion including Navan, down from $13 billion in September.
The IPO market has seen 182 offerings priced this year, up 42.2% from last year. Total deal proceeds reached $33.3 billion, up just under 17% from last year.
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