Weekly Wrap-Up: BharatPe’s EBITDA Finally turn Positive

What does BharatPe do?

Payment options for customers and companies based on QR codes. Among other things, users can use it to pay for shopping, dining out, taxis, hairdressers, mobile companies, and energy bills. By scanning a QR code, users may make payments using their bank account. It is an app-based system that enables retailers to collect payments from clients. Moreover, customers may apply for loans. The application works with iOS and Android smartphones.

Which industries and business niches does BharatPe serve?

BharatPe provides services to the retail and Fintech industry segments on a B2C and B2B basis.

Which legal organizations is BharatPe connected to?

RESILIENT INNOVATIONS PRIVATE LIMITED

How much funding has BharatPe raised till date?   

1. BharatPe has raised a total funding of $617M over 15 rounds.
2. It's first funding round was on Jul 26, 2018.
3. It's latest funding round was a Conventional Debt round on Oct 25, 2021 for $13.3M.
4. 1 investor participated in its latest round, which include Mas Financial Services.

Who are the investors in BharatPe?

1. BharatPe has 34 institutional investors including Ribbit Capital, Coatue and Insight Partners.
2. Sequoia Capital is the largest institutional investor in BharatPe.
3. Vinay Bansal and 16 others are Angel Investors in BharatPe.

Those who rival BharatPe

The competitive environment in BharatPe

Out of all of its competitors, BharatPe comes in first place.
Three of its rivals have left, leaving 16 with funding.
All told, 122 investors have participated in 46 funding rounds totaling over $1.44 billion in funding for BharatPe and its rivals.

Throughout the whole competition set, three firms have been bought.

Competitive Landscape of BharatPe

Which companies are the main rivals of BharatPe?

Yoyo Wallet, Tomato Pay, ScanPay, Trupay, and Naver Financial are among BharatPe's main rivals. There are 177 active rivals to BharatPe.

The top 10 rivals of BharatPe are shown below, ordered by Outsourced score:

BharatPe, a prominent player in India's fintech sector, has marked a historic achievement by turning EBITDA positive in October 2023. This milestone comes hand-in-hand with a surge in annualized revenue, crossing Rs. 1,500 Cr, signifying a robust growth of 31% from FY23. Let's embark on a journey through BharatPe's financial evolution, exploring key achievements, strategic initiatives, and future prospects.

Overview of BharatPe:

Founded in 2018 with a vision of fostering financial inclusion for Indian merchants, BharatPe has rapidly evolved into a frontrunner in the fintech landscape. Boasting a network of over 1.3 crore merchants across 450+ cities, the company has been a trailblazer in UPI offline transactions, processing a staggering 370 million+ UPI transactions.

Financial Milestones:

1. EBITDA Positivity: October 2023 marks a pivotal moment as BharatPe achieves EBITDA positivity, a testament to its strategic prowess and sustained growth.
2. Annualized Revenue Surge: The annualized revenue soaring past Rs. 1,500 Cr showcases a robust 31% growth from the previous fiscal year, underlining the company's financial resilience and market strength.
3. Lending Vertical Success: The lending vertical has been a key driver, with BharatPe facilitating over Rs. 640 crores in loans to merchants in October alone, reflecting a remarkable 36% YoY increase. Since its foray into lending in late 2019, the company has facilitated loans totaling over Rs. 12,400 crores.
4. Diverse Payment Products: Growth extends beyond lending, with the company recording a monthly TPV of over Rs. 14,000 crores across a diverse range of payment products. Transactions on soundbox devices have surged, showcasing the versatility and widespread adoption of BharatPe's offerings.

Strategic Focus and Forward-Looking Comments:

Nalin Negi, CFO and Interim CEO, emphasizes BharatPe's commitment to its vision of empowering millions of offline merchants and MSMEs. The strategic focus for the coming months revolves around scaling lending, POS, and soundbox businesses, accompanied by the launch of new products tailored for merchant partners. The goal is clear: to establish BharatPe as one of the largest merchant-first fintech companies in India.
Negi's positive outlook extends to sustained profitability across all business lines, ensuring a balance between growth and financial stability. The commitment to driving financial inclusion across Bharat and empowering offline merchant businesses remains unwavering.

Management's Perspective:

The CFO and Interim CEO, Nalin Negi, commends the team's dedication and hard work, attributing the success to the trust of over 1.3 crores merchant partners. The forward-looking comments echo a commitment to building a sustainable business with growth across various lines. As BharatPe gears up to be a public company, the management's strategic moves, including the acquisition of PAYBACK India and securing a Small Finance Bank license, are indicative of a well-rounded and ambitious approach.

Financial Data in Excel Table:

BharatPe's journey from inception to EBITDA positivity is a remarkable tale of growth, innovation, and commitment to financial inclusion. As it forges ahead, the company's strategic focus, positive outlook, and financial achievements position it as a force to be reckoned with in India's fintech landscape. With a diverse portfolio, a robust merchant network, and a visionary leadership team, BharatPe stands poised for even greater milestones in the times to come.