BharatPe is a Delhi-located fintech startup that offers QR code-based payment solutions primarily targeted at offline retailers and merchants. Founded by Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani in April 2018, the company has quickly gained prominence in the Indian fintech sector. BharatPe aims to ease digital payments for small merchants and kirana stores by providing them with an easy-to-use platform for accepting payments through Unified Payments Interface (UPI) and offering additional services like card acceptance and small business financing.
Initially established by Shashvat Nakrani and Bhavik Koladiya, BharatPe later saw the addition of Ashneer Grover. However, Ashneer’s tenure at the company was full of controversies and eventual resignation, leaving Bhavik and Shashvat as the remaining co-founders. Inspite of internal disputes and controversies, the company is currently led by CEO Nalin Negi.
Business Model:
BharatPe works on a B2B2C model, serving both merchants and customers. The company servs merchants with QR codes that are used to accept payments from various UPI apps, ensuring interoperability and ease of use and ease of business. Moreover, BharatPe provides services like Bharat Swipe for card acceptance and merchant loans of up to Rs 7 lakhs. The revenue model depends on providing digital transaction solutions and offering credit services to merchants at competitive charges.
Products and Features:
- BharatSwipe: A POS machine for card payments, providing zero rental fees and contributing remarkably to the company’s growth.
- Digital Gold: Introduced in 2020, allowing users to transact in 24-carat gold with 99.5% purity.
- Gold Loans: Collaborating with RBI-approved NBFCs to provide gold loans to merchant partners, providing competitive interest rates.
- Investment Platform: Launching P2P investments and bank deposit products for merchant partners.
- Payback (Zillion): A rebranded loyalty program providing various earning and redemption options.
Revenue Model:
- Transaction Processing Charges: Charging merchants for processing payments through their platform.
- Credit Services: Earning interest on merchant loans and other credit providings.
- Value-added Services: Earning revenue from additional services like Bharat Swipe and digital gold transactions.
Financial Overview:
BharatPe, a prominent fintech startup based in India, has witnessed significant growth in its revenue, funding, and acquisitions since its inception in April 2018.
Revenue:
BharatPe has experienced a significant surge in its revenue over the past few years. Its revenue growth shows the increasing adoption of its services and the expansion of its customer base. The company’s operating revenue increased from Rs 5.96 crore in FY20 to Rs 119 crore in FY21. Furthermore, in FY22, BharatPe’s operating revenue soared to Rs 456.8 crore, reflecting a substantial growth trajectory.
Inspite of the significant revenue growth, BharatPe has also faced losses, as indicated by its financial statements. In FY21, the company reported a loss of Rs 277 crore, which escalated to Rs 828.8 crore in FY22. These losses can be attributed to various factors, including investments in expansion, marketing expenses, and operational costs.
However, there have been positive developments as well. BharatPe declared positive EBITDA in October 2023, showcasing a significant milestone in its financial journey. The company’s annualized sales surpassed Rs 1,500 crore, highlighting its growing revenue potential and market presence.
| Financial Year | Operating Revenue (in crore INR) |
|---|---|
| FY20 | 5.96 |
| FY21 | 119 |
| FY22 | 456.8 |
Funding:
BharatPe has raised substantial funding through multiple rounds of investment, enabling it to fuel its growth initiatives and expand its operations and services. The company’s fundraising efforts have attracted significant interest from prominent investors, both domestic and international.
- Seed Funding: BharatPe commenced its fundraising journey with seed funding rounds, securing crucial initial capital to kickstart its operations and develop its platform.
- Series A to Series E Funding: As BharatPe gained traction and demonstrated its potential in the market, it attracted larger rounds of funding from venture capital firms and strategic investors. These funding rounds provided the company with the necessary resources to scale its business, enhance its technology infrastructure, and explore new opportunities.
- Debt Financing: In addition to equity funding, BharatPe also raised capital through debt financing, leveraging its growth prospects and financial performance to secure loans from financial institutions. Debt financing played a vital role in supporting the company’s expansion plans and working capital requirements.
- Total Funding Amount: Cumulatively, BharatPe has raised approximately $680.5 million in funding across various rounds, underscoring investor confidence in its business model and growth potential.
| Funding Round | Amount Raised (in million USD) |
|---|---|
| Seed Funding | – |
| Series A | 15 |
| Series B | 50 |
| Series C | 75 |
| Series D | 108 |
| Series E | 370.5 |
| Debt Financing | – |
| Total Funding | 618.5 |
Acquisitions:
BharatPe has made strategic acquisitions to complement its core business, enter new markets, and expand its product offerings. These acquisitions have enabled the company to diversify its revenue streams, strengthen its competitive position, and capture synergies with complementary businesses. Here are notable acquisitions by BharatPe:
- Payback (Now Zillion): BharatPe acquired Payback, a rewards and loyalty platform, in June 2021 for $27 million. The acquisition aimed to enhance BharatPe’s customer engagement capabilities, drive user retention, and offer additional value-added services to its merchant partners.
- TrillianLoans: In March 2023, BharatPe announced the acquisition of TrillianLoans for $36.05 million. This strategic move positioned BharatPe to expand its presence in the lending segment, leverage TrillianLoans’ expertise, and offer enhanced financial solutions to its merchant partners.
| Acquisition | Acquisition Amount (in million USD) |
|---|---|
| Payback (Zillion) | 27 |
| TrillianLoans | 36.05 |
Challenges and Controversies:
BharatPe has faced several challenges and controversies, including disputes among founders, allegations of financial misconduct, and fines for regulatory violations. These incidents have impacted the company’s reputation and raised concerns about its governance and internal management practices.
Bharatpe Partnerships:
BharatPe has forged partnerships with NPCI and Women Entrepreneurship Platform to grow its offerings and reach a wider audience. These collaborations aim to enhance the company’s services and support its growth objectives.
Marketing Campaigns:
The company has launched innovative marketing campaigns like “BharatPe Lagao, World Cup Jao” to engage merchants and promote its brand. These campaigns help build brand awareness and drive customer acquisition in competitive markets.
Competitors:
BharatPe faces competition from prominent players like Google Pay, PayTm, and PhonePe, as well as emerging fintech startups like MobiKwik and albo. Inspite of intense competition, BharatPe’s focus on merchant-centric solutions sets it apart in the market.
Future Goals:
Looking ahead, BharatPe aims to continue scaling its operations and expanding its product offerings. The company plans to focus on increasing merchant adoption, enhancing its technology infrastructure, and exploring new revenue streams. By leveraging its strong market position and innovative solutions, BharatPe aims to become a leading player in India’s fintech ecosystem.
BharatPe’s journey indicates the challenges and opportunities inherent in the fintech sector. Despite facing setbacks, the company has demonstrated resilience and innovation, positioning itself for continued growth and success in the dynamic Indian market. With a customer-centric approach and a focus on delivering value-added services, BharatPe is poised to capitalize on the growing demand for digital payment solutions and emerge as a key player in India’s evolving fintech landscape.
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