BharatPe Posts INR 927 Cr Loss In FY23

SUMMARY

BharatPe’s consolidated operating revenue jumped 125% to INR 1,028.9 Cr in FY23 from INR 456.8 Cr in the previous fiscal year

BharatPe’s net loss increased 12% from INR 828.6 Cr in FY22. The FY22 loss number excluded one-time non-operating expense of INR 4,782 Cr

The startup, which is involved in legal battles with its former MD Ashneer Grover, saw its total expenditure increase 39% YoY to INR 2,108.5 Cr in FY23

Peak XV Partners-backed fintech startup BharatPe saw its consolidated operating revenue cross the INR 1,000 Cr mark in the financial year ended March 31, 2023. The Delhi NCR-based fintech unicorn reported an operating revenue of INR 1,028.9 Cr in the financial year 2022-23 (FY23), a jump of 125% from INR 456.8 Cr in the previous fiscal year.

The fintech unicorn provides a technology platform and various digital services to its users and earns revenue from transaction and service fee, and allied payments. It acts as a lending services provider (LSP) for its financing partners and also provides digital services to its merchants.

Last month, BharatPe claimed that its merchant lending business saw a remarkable growth, with the value of loans rising 129% to INR 5,339 Cr in FY23.

Besides lending, the startup also introduced newer services like QR codes, credit card bill payments, and utility payments during the year under review. The startup claimed it also saw a significant increase in the installation of its soundbox devices.

Including other income, total revenue rose 71.6% to INR 1,167.5 Cr in FY23 from INR 680 Cr.

Despite the strong growth in operating revenue, BharatPe’s net loss increased during the year under review. The startup posted a net loss of INR 926.9 Cr in FY23, an increase of 12% from INR 828.6 Cr in the previous fiscal year.

It must be noted that BharatPe reported a one-time non-operating expense of INR 4,782 Cr due to change in fair value of compulsory convertible preference shares in FY22. We have excluded this expenditure to calculate the startup’s loss in FY22.

In the statement issued last month, BharatPe had claimed a 84% reduction in its standalone loss before tax. However, the startup included the one-time non-operating expense to calculate this decline.

Where Did BharatPe Spend?

The fintech startup’s total expenditure increased 39% to INR 2,108.5 Cr during the year under review from INR 1,514.6 Cr in FY22.

Employee Benefit Expenditure: Employee costs increased 65% to INR 304.4 Cr in FY23 from INR 184.7 Cr in FY22. The sharp increase indicates that the startup might have grown its employee headcount during the year. It is pertinent to mention here that BharatPe saw a number of high-level exits after its former MD Ashneer Grover left the startup on a bitter note.
Transaction Processing Charges: Expenses under this bucket surged 74% to INR 395.5 Cr from INR 226.9 Cr in the previous fiscal year.
Financial Guarantee Expenses: The startup’s financial guarantee cost rose marginally to INR 268.2 Cr in FY23 from INR 266.6 Cr in FY22. This is the cost borne by BharatPe for providing financial guarantees to lending partners to cover the loss on the credit offered to the merchants.
Legal Cost: BharatPe, which is involved in multiple legal battles with Grover, saw its legal cost rise 20% to INR 44.5 Cr in FY23 from INR 37 Cr in FY22.

BharatPe’s cash and cash equivalents stood at INR 508.3 Cr at the end of FY23.

Founded in 2018, BharatPe claims to have a registered network of over 1.3 Cr merchants across 450 cities. The startup has facilitated disbursement of loans of over INR 12,400 Cr till date in partnership with NBFCs.

Earlier today, it was reported that BharatPe has marked the final close of its $100 Mn debt round.

Since its launch, the fintech unicorn has raised over $650 Mn in funding across multiple rounds. It counts marquee names like Ribbit Capital, Peak XV Partners, Insight Partners, and Steadview Capital among its backers.