Tiger Global in Talks to Invest in BharatPe - $2.5 Billion Valuation

BharatPe Secures Advanced Funding for Expansion

BharatPe, an Indian fintech company, is reportedly nearing the completion of a new funding round. Discussions are underway to secure approximately $250 million, with Tiger Global leading the investment.

This Series E funding round values the New Delhi-based firm at $2.5 billion, according to sources who requested to remain anonymous due to the confidential nature of the negotiations.

Prior to this potential investment, BharatPe had already raised $233 million in equity and $35 million in debt. Its valuation stood at roughly $900 million during its Series D round in February, and $425 million the previous year.

Initial reports regarding the talks between Tiger Global and BharatPe, along with the projected valuation exceeding $2 billion, were first published by the Indian news source, The CapTable.

BharatPe, which has backing from investors including Coatue, Ribbit Capital, and Sequoia Capital India, has not yet issued a public comment on the matter.

Focus on Offline Merchants and Digital Payments

BharatPe provides a platform designed to assist offline merchants in adopting digital payment methods and accessing working capital. A significant portion of India’s population remains offline despite being the second-largest internet market globally, with over 600 million users.

Many small businesses, like local shops and roadside vendors, operate without consistent internet access. BharatPe addresses this by utilizing QR codes and point of sale (PoS) machines compatible with India’s UPI payment infrastructure.

Currently serving over 6 million merchants, BharatPe had deployed more than 50,000 PoS machines as of November last year. The platform processes over $123 million in monthly transactions.

While access to the universal QR code is free for merchants, BharatPe intends to generate revenue through lending services, a goal now more attainable with increased funding.

Transitioning Towards a Banking License

Recently, India’s central bank, the RBI, granted an in-principle license to Centrum Financial Services, following its acquisition of a distressed bank earlier in the year, to establish a small finance bank.

Centrum Financial Services is collaborating with BharatPe in this endeavor, with both entities described as “equal” partners in a joint statement.

Jaspal Bindra, Executive Chairman of the Centrum Group, stated that the two companies will collaborate to build a “new age bank.”

Furthermore, BharatPe is developing two new applications. PostPe will offer credit options through QR UPI, and another B2C app will facilitate peer-to-peer lending with interest rates up to 12%—without requiring collateral, with BharatPe acting as an intermediary.

These new products are anticipated to launch within the current month, according to a source familiar with the development.