Leading fintech unicorn BharatPe created a stir in the banking industry in October when it achieved a positive Ebitda. The company announced an impressive 31% growth in annualized sales over the same period previous year, totaling Rs 1,500 crore. This noteworthy accomplishment is credited to BharatPe’s loan and payments business’s notable growth, which reflects the confidence of its extensive network of more than 1.3 crore merchant partners.
Credits: Money Control
The fintech major has not only achieved positive Ebitda but has also witnessed a noteworthy reduction in its burn rate. The company successfully lowered its burn rate, which was averaging at Rs 60 crore per month in FY23, to attain positive Ebitda. Ebitda, an acronym for earnings before interest, tax, depreciation, and amortization, is a key financial metric indicating operational profitability.
Lending and Payments Growth:
BharatPe’s success story in October is further underscored by its highest-ever gross revenue of $23.5 million (around Rs 200 crore) for August 2023. The surge in revenue is primarily attributed to the growth in its lending business and expansion into additional services, such as Point of Sale (POS) devices. In October alone, BharatPe facilitated loans exceeding Rs 640 crores for its merchants, marking a substantial year-on-year growth of 36 percent. Since entering the lending segment in late 2019, the company has facilitated loans totaling over Rs 12,400 crores.
Total Payments Volume (TPV) and Merchant Network:
The fintech giant also recorded a monthly Total Payments Volume (TPV) of over Rs 14,000 crore across its payment products in October. With a vast network of over 1.3 crore merchants across more than 450 cities, BharatPe has emerged as a key player in UPI offline transactions, processing over 370 million UPI transactions. Its POS business processes payments worth more than Rs 29,000 crore annually.
Strategic Focus and Future Plans:
Nalin Negi, CFO and Interim CEO of BharatPe, expressed the company’s strategic focus on scaling its lending, POS, and soundbox businesses. Additionally, BharatPe aims to launch new products tailored for its merchant partners while concentrating on the development of its consumer and Non-Banking Financial Company (NBFC) businesses. This forward-looking approach positions BharatPe as a dynamic player in the ever-evolving fintech landscape.
Investors and Path to Public Listing:
BharatPe boasts prominent investors, including Ribbit Capital, Coatue, Insight Partners, and Peak XV partners (formerly Sequoia Capital India). The positive financial performance over the past month not only propels BharatPe towards its plans for a public listing but also serves as a reassuring development following the dramatic events of 2022. The exit of controversial co-founder Ashneer Grover prompted a series of changes within the company, including the expansion of the board, securing key licenses from the Reserve Bank of India (RBI), attracting top financial services and technology talent, and establishing a robust internal governance framework.
The strong expansion and financial accomplishments of BharatPe are anticipated to benefit the fintech sector as a whole. The company’s accomplishments demonstrate how fintech companies can overcome obstacles and seize opportunities with tenacity and flexibility. BharatPe is a fintech business that sets the standard for others and adds to the general vibrancy of the startup ecosystem in India as it prepares for a possible public listing.
In conclusion, BharatPe is positioned as a leader in the fintech industry by its recent financial achievements, which include generating significant growth in its loan and payments operations and reaching positive Ebitda. The company’s extensive merchant network, solid financial support, and strategic emphasis on innovation all point to a bright future for the business. The fintech startup BharatPe is positioned to have a significant influence on the direction of digital money in India as it expands its operations and broadens the range of products it offers.