Fintech Giant BharatPe In Talks To Raise $100 Mn From Existing Investors

Fintech unicorn BharatPe is in talks with existing investors to raise $100 Mn in a new round of funding. 

The fintech giant is also looking to rope in a new investor in the funding round, ET reported, citing sources. BharatPe had last raised a major funding round in 2021 when it raised $370 Mn at a valuation of $2.9 Bn.

However, the publication reported that the fintech giant might have to settle for a $2 Bn valuation at the latest round, given current market conditions.

BharatPe is planning to raise the round amid an ongoing leadership exodus. CBO Nishant Jain, VP of organised trade (mid-sized retailers), Prashant Gagneja, VP of user growth, Ashish Aggarwal, VP of products Anurag Rathor and head of product design Rahul Chauhan have all moved on.

“There have been talks for new capital at BharatPe, but the contours are not finalised yet and valuation will be tricky because of its troubles as well as the broader correction in valuation,” a person aware of the goings-on at BharatPe told ET, adding it is still a couple of months away.

Post-Ashneer BharatPe

Ever since cofounder and ex-MD Ashneer Grover’s unceremonious exit in 2022, BharatPe has seen a complete reshuffle at the top. Cofounder Bhavik Koladiya also left the fintech last year, leaving only Shashvat Nakrani as the only cofounder to be still at BharatPe.

In January this year, CEO Suhail Sameer also stepped down, which led the fintech to appoint Nalin Negi as CFO and elevate him to interim CEO after Sameer’s departure. Further, former Razorpay senior executive Pankaj Goel joined as CTO and former ICICI Bank executive Kohinoor Biswas joined as head of consumer lending. 

Before that, BharatPe got Aparna Kuppuswamy as chief risk officer and Sandeep Indurkar as CBO for banking and other alliances.

The fintech giant set a target of hitting EBITDA profitability by March 2023, leading up to an IPO in the next two years. These plans have been the backbone for BharatPe to raise fresh money and scale up its business operations. However, the fintech posted a net loss of INR 5,610 Cr for FY22, with a revenue of INR 321 Cr.

The new funding round might also be significant given BharatPe’s commitment towards Unity Small Finance Bank, where it is a significant shareholder. The company also completed the acquisition of Trillion Loans earlier this year, another non-banking financial company (NBFC) to shore up its lending operations.

In a recent press statement, the fintech said it has around 200K devices deployed across more than 400 locations in India. It intends to double its network of terminals over the next year with the launch of its new Android-based PoS terminal.