From collapse to Nasdaq: Navan files for IPO after pandemic reinvention
In 2020, with the outbreak of the coronavirus pandemic, Israeli-founded Navan, then called TripActions, was close to collapse. In March, as the world went into lockdown, aviation ground to a halt, and so did the startup that helped organizations book business trips for their employees.
But in line with the expectations placed on startups, especially those founded by Israelis, TripActions reinvented itself. Founders Ariel Cohen and Ilan Twig, who launched the company in 2015, used the crisis to expand significantly into new areas: corporate payments, entertainment bookings, and expense management.
Now Navan wants to take advantage of the IPO window that has opened on Nasdaq, particularly for fintech-focused technology companies, and revive its long-delayed listing. Over the weekend, Navan filed its prospectus, signaling it is preparing to go public in the coming weeks. If successful, it will be the third Israeli tech company to list this year, after Via and eToro. With 156 IPOs raising $30 billion, 2025 is already the strongest year for listings since 2021.
The prospectus does not state how much Navan plans to raise or at what valuation. But based on its current performance, the $12 billion valuation it once targeted in 2022 seems far-fetched. Even the $9 billion valuation at its last fundraising round that year, after its IPO was postponed, looks ambitious. For comparison, Swedish fintech Klarna, which went public last week at a $17 billion valuation, has been profitable for more than a year and generates higher quarterly revenue than Navan produces annually. The figures in Navan’s filing suggest a more realistic valuation of around $5 billion, with an optimistic ceiling of $6–7 billion if market conditions are favorable.
Navan has shown rapid and consistent growth and secured top-tier underwriters led by Goldman Sachs and Citi, alongside Jefferies and Morgan Stanley. Yet it remains unprofitable and operates in a crowded market, prompting it to shift more focus outside the U.S., a move not always welcomed by Wall Street investors.
Navan was founded in 2015 by Cohen (50), its CEO, and Twig (51), its CTO. Although incorporated in the U.S., it maintains a development center in Israel. Both founders are expected to sell some shares in the IPO, having already cashed out millions through previous secondary sales, according to the filing. The prospectus identifies three shareholders with stakes above 5%: Andreessen Horowitz, Lightspeed, and Israeli investor Oren Zeev. Ben Horowitz and Zeev also sit on the board.
Navan’s platform covers nearly all aspects of business travel: flights, hotels, restaurants, entertainment, in-trip payments, and expense reimbursement. The so-called “bleisure” market, blending business and leisure travel, is estimated at $185 billion. Navan faces competition from Booking.com, American Express, Ramp, and Brex. Still, it says its platform saved clients 15% on travel expenses last quarter, with half of all service requests resolved by AI without human involvement. Customers include Unilever, Adobe, and Christie’s.
Investor appetite for fintech is strong, with recent IPOs from eToro, Klarna, and StubHub highlighting momentum. But Navan’s persistent losses remain a red flag, even as it reaches an annual revenue run rate of more than $600 million. Losses are narrowing, and gross margins improved from 60% in 2024 to 68% in 2025, but its high debt load is a burden. Navan carries $657 million in debt against $223 million in cash.
The IPO aims, in part, to reduce this debt. Earlier this year, Navan raised $100 million via a SAFE note, classified as debt but convertible to equity after the IPO. It also has $195 million in convertible bonds slated for conversion. In total, Navan has raised $2.2 billion through equity and debt, including a $400 million debt round led by Goldman Sachs, now one of its IPO underwriters.
For the first half of 2025, Navan posted $329 million in revenue, up 30% year-over-year. Operating losses shrank from $53 million to $28 million, pointing toward breakeven, though net losses widened to $100 million due to steep interest expenses. For 2024, revenue grew 33% to $537 million, while net losses fell from $332 million to $181 million, again reflecting heavy debt costs.
Navan counts over 10,000 active corporate clients, with $3.8 billion in payments processed over the past 12 months, up 18%. Flight and hotel bookings totaled $7.6 billion, up 34%. More than 40% of revenue now comes from outside the U.S. The company employs 3,400 people across 16 countries.
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