BharatPe Valuation: India's Fintech Firm Reaches $2.85 Billion

BharatPe Secures $370 Million Funding, Reaching $2.85 Billion Valuation

Indian fintech company BharatPe has successfully completed a new financing round, securing $370 million. This capital injection is intended to facilitate rapid business expansion over the coming two years.

The company is now the nineteenth Indian startup to achieve unicorn status this year, a significant increase from the eleven that reached this milestone in the previous year.

Series E Funding Details

This latest funding round, designated as Series E, was spearheaded by Tiger Global. It has resulted in a post-money valuation of $2.85 billion for the New Delhi-based startup, as announced on Tuesday.

Dragoneer Investor Group and Steadfast Capital also contributed to this round, bringing the total funding raised by BharatPe to over $580 million.

Growth and Valuation Trajectory

Reports from June indicated BharatPe was seeking approximately $250 million in funding with a pre-money valuation of $2.5 billion. This information was initially reported by TechCrunch.

The startup’s valuation has seen substantial growth, increasing from $425 million last year to $900 million in February of this year.

Investor Demand and Secondary Transactions

BharatPe co-founder Ashneer Grover revealed that the initial target of $250 million was surpassed due to strong investor interest and an oversubscription of the offering.

The investment also encompassed some secondary transactions, totaling $20 million.

Leadership Changes

Amidst some reported internal issues and executive departures, BharatPe has appointed Suhail Sameer as its new Chief Executive Officer.

Ashneer Grover stated that Sameer’s appointment recognizes his significant contributions to business growth and his leadership capabilities. Grover will now focus on strategy, product development, technology, and capital allocation.

BharatPe’s Core Business

Existing investors in BharatPe include Coatue, Ribbit Capital, and Sequoia Capital India.

The company provides a service that enables offline merchants to accept digital payments and access working capital.

Addressing the Offline Market in India

Despite India’s emergence as the second-largest internet market with over 650 million users, a substantial portion of the population remains offline.

Many small businesses, like roadside vendors and local stores, operate without internet access. BharatPe aims to bridge this gap by providing accessible digital payment solutions.

Utilizing QR Codes and UPI

To facilitate digital payments for these merchants, BharatPe leverages QR codes and point-of-sale machines. These systems are compatible with India’s government-backed Unified Payments Interface (UPI) infrastructure.

Merchant Reach and Lending

BharatPe currently serves more than 7 million merchants across over 130 Indian cities.

The company has disbursed approximately $300 million to its merchant partners and intends to generate revenue through lending services, offering free access to universal QR codes.

Expansion Plans and Small Finance Bank License

BharatPe plans to broaden its product portfolio and collaborate with Centrum Financial Services. Together, they recently received a license from the Reserve Bank of India to establish a small finance bank.

The two companies are described as “equal” partners in this venture.

Future Outlook

Ashneer Grover expressed confidence in the company’s financial position, stating they have $0.5 billion in cash reserves. He believes this will enable them to successfully build India’s first fully digital bank.

Tiger Global’s Increasing Investment in India

This development highlights Tiger Global’s growing interest in the Indian market.

The firm has recently invested in numerous Indian startups, including DealShare, Classplus, Apna, and Urban Company.

Additional Funding in the Indian Market

Infra.Market, a startup focused on construction and real estate logistics, also secured $125 million in a round led by Tiger Global on Tuesday.