Andreessen Horowitz buys the dip in Navan after post-IPO selloff, investing $9.3 million
The venture firm raised its holding after the travel-fintech’s shares fell more than 50% from their IPO valuation.
Andreessen Horowitz has moved to deepen its exposure to Navan, using the sharp post-IPO decline in the fintech company’s shares to increase a stake that already stood at roughly 11%.
According to regulatory disclosures, Andreessen Horowitz Funds, a group of entities that together hold beneficial ownership of more than 10% of Navan, purchased 702,395 shares of Class A common stock over three consecutive days between December 17 and December 19. The transactions totaled $9.3 million and were executed at weighted average prices ranging from $12.65 to $14.70, well below both Navan’s IPO valuation and its current trading level.
The purchases came after a turbulent debut on the public markets. Navan’s shares fell sharply following its late-October IPO, sending the company’s market capitalization down more than 50% from its initial $6.7 billion valuation to a low of about $3.2 billion last week. That decline followed the release of Navan’s first earnings report as a public company, which showed strong revenue growth alongside widening losses and prompted renewed investor caution.
Andreessen Horowitz’s buying appears to have been timed near the stock’s recent lows. On December 17, the firm bought 347,600 shares at an average price of $12.65. The following day, it acquired another 103,960 shares at $13.61, and on December 19 added 240,835 shares at $14.70. Since then, Navan’s shares have rebounded, up roughly 15% over the past five trading sessions, giving the company a market capitalization of approximately $3.9 billion.
Navan’s latest earnings report, released just days before Andreessen Horowitz began buying, painted a mixed picture. Revenue for the third quarter rose 29% year over year to $195 million, with gross margins reaching 74% when excluding one-time accounting items, supported in part by increased use of AI in customer support. Non-GAAP operating profit improved to $25 million, compared with $6 million a year earlier.
At the same time, losses deepened. Net loss for the quarter widened to $225 million, including about $100 million tied to an accounting item related to debt repayment, while operating loss expanded to $79 million. The company also announced that its chief financial officer, Amy Butte, would depart in January, adding to investor unease.
Navan, founded in 2015 by chief executive Ariel Cohen and chief technology officer Ilan Twig, raised $920 million in its IPO and positions itself as a platform that combines corporate travel booking, payments, and expense management. It operates in a market it estimates at $185 billion and faces competition from both established travel companies and fintech rivals. Despite the financial pressure, the company reported improved cash burn of $11 million, $809 million in cash on hand, and reduced debt of $200 million.
