BharatPe, a leading fintech unicorn, is gearing up for a significant financial maneuver as it aims to secure INR 500 Cr in debt through unlisted non-convertible debentures (NCDs). This strategic move, approved by BharatPe’s board, unfolds against the backdrop of the company’s dynamic growth in the fintech landscape. Let’s delve into the details of this debt fundraising initiative and its implications for BharatPe’s future trajectory.
BharatPe’s Debt Fundraising Strategy
The decision to raise INR 500 Cr through unlisted NCDs signals BharatPe’s proactive approach to bolster its financial position. While the final issue price is pending, the company plans to secure the funds in multiple tranches throughout the upcoming year. This measured approach reflects BharatPe’s strategic financial planning, allowing for flexibility and adaptability in the evolving fintech landscape.
BharatPe’s board, in a proactive move, recently sanctioned the fundraising initiative, underlining the company’s commitment to fueling its growth trajectory. In tandem with this, the board approved the appointment of Colin Bryant as a director. Bryant, currently the Chief Operating Officer (Private Equity) and General Partner at the US-based hedge fund Coatue, brings a wealth of experience to the board. His appointment follows the departure of Rahul Kishore from Coatue in November.
In a strategic move, BharatPe elevated its General Counsel, Sumeet Singh, to the position of a whole-time director. Singh, who assumed roles at BharatPe in 2021, has played a pivotal role in overseeing corporate strategy, corporate affairs, and fundraising. His elevation is a testament to his leadership and the integral role he has played in steering the company’s strategic initiatives. This move underscores BharatPe’s commitment to nurturing talent from within its ranks.
BharatPe: Financial Snapshot and Previous Funding Rounds
BharatPe, backed by Peak XV, has been on an upward trajectory, evident in its last funding round where it raised an impressive $370 Mn at a valuation of $2.9 Bn in 2021. The company has also been in talks to secure an additional $100 Mn in a new funding round, showcasing sustained investor confidence. Notably, BharatPe reported turning EBITDA positive in October, marking a significant milestone in its financial journey.
BharatPe’s robust financial performance is further underscored by its claim of crossing an annualized revenue of INR 1,500 Cr in FY24, reflecting a noteworthy 31% increase from the previous fiscal year. The fintech unicorn’s lending vertical has been a standout performer, facilitating loans exceeding INR 640 Cr for its merchants in October alone. This achievement demonstrates a commendable 36% year-on-year jump compared to FY22, highlighting the impactful role played by BharatPe in empowering small businesses.
Future Implications and Growth Trajectory
As BharatPe navigates the complexities of the fintech landscape, the INR 500 Cr debt fundraising initiative holds significant implications for its future trajectory. The funds raised are poised to strengthen the company’s financial backbone, providing the necessary resources for innovation, expansion, and strategic partnerships. With a dynamic leadership team, proven financial resilience, and a commitment to technological advancements, BharatPe is well-positioned to capitalize on emerging opportunities in the evolving fintech ecosystem.
BharatPe’s move to secure INR 500 Cr in debt through unlisted NCDs marks a strategic step in fortifying its position as a key player in the Indian fintech landscape. The financial maneuvers, coupled with key appointments and notable achievements, showcase BharatPe’s commitment to sustained growth and innovation. As the company continues to carve its niche in the ever-evolving fintech sector, the unfolding chapters of its financial journey will undoubtedly be closely watched by industry observers, investors, and stakeholders alike.
