How BharatPe Won a Rare Banking Licence In India?

Sourav Dey Sourav Dey
Nov 18, 2021 4 min read
How BharatPe Won a Rare Banking Licence In India?

Bharatpe was launched back in March 2018 and since then it has created a buzz all over the country. The company caters to small store owners like the Kirana store owners and other small merchants. Its primary products and services are all finance-related because it offers QR codes for making UPI payments, Bharat Swipe for card acceptance, and other small business finances.

Bharatpe came out when there was tight competition among those who were already doing well in the market like Paytm, Phonepe, and other such companies. It was quite surprising that within two years, Bharatpe grew so much and is now looking forward to getting its banking license in India.

This is quite unusual because it is not something that happens with every business which has just started in the financial market. For a company like Bharatpe, this is a great achievement.

About Bharatpe
Bharatpe - Founders & Team
Bharatpe’s Bold Move for getting Banking License
How Bharatpe Earns Revenue?
Conclusion
FAQs

Founder of BhataPe-Ashneer Grover on license for India’s 1st digital small finance bank

About Bharatpe

Bharatpe Logo
Bharatpe Logo

Bharatpe is not a government-owned company but is a private one. The owner of Bharatpe is Ashneer Grover and has its head office based in Delhi. This free application can be used by anyone to make payments by scanning QR codes or people can even make card payments through ‘Swipe’.

Merchants can sign up for the application free of cost and can start accepting payments from their customers instantly. The transactions that are made between the merchants/shop owners/ Kirana store owners/ shopkeepers are done directly through the bank accounts of both parties.

Bharatpe application can be used to scan all types of QR codes whether it is a Paytm code, Phonepe or Gpay, or any other UPI app. Additionally, for every transaction you make using Bharatpe, there will be no amount deducted as ‘transaction charges’ which is so much of a standout feature of the app.

Bharatpe - Founders & Team

Bharatpe founders
Bharatpe founders
  • Ashneer Grover (Chief Executive Officer, Co-Founder)
  • Shashvat Nakrani (Co-Founder)
  • Bhavik Koladia (Group Head – Product & Technology)
  • Suhail Sameer (Group President)

Bharatpe’s Bold Move for getting Banking License

Bharatpe will be joining the $1 billion unicorn club valuation within the next few months or a year and along with it, they are going to be the half-owner of a bank in India. Jaspal Bindra, who was a former Standard Chartered Bank Asia Pacific CEO will be the owner of the other half of the bank.

Now, coming to the bold move that Bharatpe has made is that they will be setting up a small finance bank in approval with the Reserve Bank of India. However, Bharatpe will not be the only one to do so because Centrum Financial Services will also be a part of the new ‘small finance bank’.

Bharatpe is about to take over the crisis-ridden banks Punjab and Maharashtra Cooperative Bank and soon after that, they will be setting up its small finance bank. Also, thanks to RBI for granting a license to Bharatpe for taking such an initiative to keep the services of these banks running.

RBI has granted the banking license to Bharatpe for the first time after six years. Bharatpe had announced that a former head of SBI, Rajnish Kumar will be joining as a chairman of the board and will be acting as a mentor as well for setting up SFB.


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How Bharatpe Earns Revenue?

Bharatpe is now India’s leading fintech company which is dealing with UPI payments primarily. But, that is now how the company generates its income. In an interview with India TV, the CEO and the co-founder of the company, Ashneer Grover said that the company is into lending businesses as well.

The company offers a payment system to the merchants for free so that they can become an integral part of their business. But, the company earns its revenues by conducting lending business. Bharatpe also offers loans to the merchants within 5 minutes as said by the CEO & Co-founder, Ashneer Grover.

Bharatpe offering loans is also one of the features that are new to the market along with merchant-to-merchant lending. Ashneer Grover, in an interview with India TV, said that all documentation of taking a loan can be done in the smartphone itself and within five minutes the money would be transferred to the merchant’s bank account.

Conclusion

Bharatpe’s business has been expanding over the last 3-4 months growing from 65 cities to 100 cities during the time. Suhail Sameer, Group President of Bharatpe said in an interaction with the Economic Times said that the company grew significantly within two years.

With the growing usage of digital payments, Bharatpe might become the leader of e-payment in India. The company is planning to expand its business further to 300 more cities by March 2023.

FAQs

Is Bharatpe approved by the Reserve Bank of India (RBI)?

Yes, Bharatpe has been approved by the RBI and has been granted a license to set up a small finance bank in India.

Is Bharatpe free?

Bharatpe is completely free of cost. The company does not charge any transaction fee.

Who is the founder of Bharatpe?

Ashneer Grover and Shashvat Nakrani has founded Bharatpe on March 20, 2018.

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