BharatPe turns profitable 5 years after inception
BharatPe has turned profitable five years after being founded in 2018, CFO and interim CEO Nalin Negi has announced.
Indian fintech major BharatPe has turned profitable five years after being founded in 2018, CFO and interim CEO Nalin Negi announced on November 28.
With its earnings before interest, taxes, depreciation, and amortisation (EBITDA) turning positive, BharatPe clocked October 2023 as the first profitable month. The firm reported that its annualised revenue has crossed ₹1,500 crore, an uptick of 31% compared to the same month previous year. The fintech firm facilitated over ₹640 crore worth of loans to its merchants in October on its platform, which is an increase of 36% on a year-on-year basis.
The company has also significantly cut down its EBITDA burn—which was averaging at Rs. 60 Cr per month in FY23—to attain EBITDA positivity. The firm added that it has facilitated total loans worth ₹12,400 crore.
“The EBITDA positive milestone reflects the trust bestowed upon us by our 1.3 crore merchant partners,” Negi said, adding that October was a great month on the back of significant growth in loans. BharatPe’s digital payments verticals grew considerably with a monthly transaction count exceeding ₹37 crore.
Negi said the Peak XV Partners-backed unicorn will focus on further scaling its lending, Point of Sale (POS), and soundbox businesses.
“We will launch new products tailored for our merchant partners, and focus on the development of our consumer and NBFC businesses,” he added.
"We are thrilled with the progress the company has made to reach this key profitability milestone, reaffirming the belief we have had since our seed investment that BharatPe has the potential to build a large sustainable business by solving the needs of millions of small merchants in India,” Harshjit Sethi, MD, Peak XV said.
Sethi noted that over the past two years, the fintech firm has expanded the board by adding strong independent directors, secured key licenses from the Reserve Bank of India (RBI), attracted top financial services and technology talent and set in place a strong internal governance framework.
“These steps combined with strong execution by the team puts BharatPe firmly on a path where it is gearing up to be a public company," he said.
BharatPe’s announcement comes on a day when its founder Ashneer Grover, who was expelled last year, was reprimanded by the Delhi High Court for the use of "unparliamentary" language against the company.
Earlier in May, the court had issued directions against the use of "unparliamentary language" Grover as well as Bharat Pe against each other on social media.
Grover, who has issued an unconditional apology to the high court, has also been fined to the tune of ₹2 lakh.
First Published: Nov 28, 2023 12:12 PM IST
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