BharatPe Business model | How does BharatPe Make Money

Arijit Karan Arijit Karan
Jan 25, 2022 5 min read
BharatPe Business model | How does BharatPe Make Money

BharatPe became very popular after its launch in 2018 among businessmen as it solved a unique problem. BharatPe's boost generally happened during the pandemic when no payment app was charging transaction fees below 1.5%. This was the time when BharatPe cashed in on the opportunity. They made transactions absolutely free.

This is why a lot of business owners who had to do large transactions daily, shifted to BharatPe. Today, it has more than 7.5 million active users in its app. Apart from providing free transactions, it also has solved a number of other problems. There is also a lot more to see about the business model which has grown to such an extent in such a small time. So, without any further ado, let us talk about the BharatPe business model.

About BharatPe
Business Model of BharatPe
How does BharatPe Make Money
BharatPe Funding
What is Unique about BharatPe
How did BharatPe Scaled Quickly?

About BharatPe

BharatPe is a fintech company headquartered in Bangalore. This payment aggregator has enabled transactions without any kind of fees. It has leveraged UPI Β to enable this. It is a QR-based payment aggregator by which you can do any kind of transaction using the app.

BharatPe was founded by Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani. All of these founders have a great profile. Ashneer Grover and Shashvat Nakrani are alumni of IIT Delhi. Ashneer Grover is a resident of South Delhi and has also graduated from IIT Delhi. He has been working with startups for a pretty long time. Previously he was also the CFO of Grofers, the grocery e-commerce giant. Ashneer has also led the Corp Dev for Amex India.

Bhavik Koladiya has decent knowledge and experience about Fintech in general. He is heading the product and technology of the company.

Shashvat Nakrani is originally from Bhavnagar and is a student of IIT Delhi of 2015-2019. He has done his B-Tech in Textile engineering.

Business Model of BharatPe

BharatPe has a very unique business model and because of this, it has grown exponentially. The major growth of BharatPe happened during the pandemic. In this time, they devised a smart method to expand. They leveraged UPI to enable absolutely free transactions. BharatPe was providing this when its competitors were charging fees less than 1.5 %. This is why a lot of vendors started moving to BharatPe.

Making transactions free encouraged more people to use the platform. It also kind of did indirect marketing of BharatPe. When the vendors came on this platform, they started exploring the platform in a great way. The platform has been designed as a one-stop solution for all kinds of payments. They have devised various kinds of products to cater to the people.

The company has launched the Xtraincome card which is an easy transaction solution, very helpful for business owners. It also gives you a cashback of 1% whenever you do a transaction with it.

BharatPe XtraIncome Card
BharatPe XtraIncome Card

These applications are actually solving the main pain points of the businessman. Apart from this, they have also introduced BharatSwipe which is an innovative card swapping system. Another product is called BharatPe digital gold.


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How does BharatPe Make Money?

BharatPe earns its revenue by providing macro to microloans to its business owner. A working professional or businessmen get loans very easily but small business owners face problems while applying for the loan as their CIBIL score is low.

BharatPe tracks the person's transaction using its various products like Xtremecards and evaluates their capability to return the loan. According to it, they provide microloans to small businessmen without much paperwork. They do not provide loans using the CIBIL score. This solution accurately serves the pain points of small businesses. This is the main source of revenue for the app.

BharatPe Funding

BharatPe has raised a total of $700 million. They have presently gone through 12 rounds of funding. Apart from that, the company has raised a debt of 100 crores. They have secured funding of $370 million from Tiger Global Management. Apart from that they also have acquired funding from Dragoneer group, Ribbit Capital, Coatue Management.

What is Unique about BharatPe

Recently BharatPe has upgraded itself by collaborating with NBFC which are allowed to launch a 12% club by the RBI. This will give them a lot of benefits as compared to its competitor's who are having the same product. This is because now any customer can go ahead and invest and can get upto 12% interest. They can borrow upto 10 lakhs.

Growth of BharatPe

Since its inception in 2018, this company has shown rapid growth. Today BharatPe ranks 4th after Paytm, Google Pay, and PhonePe in terms of users. Apart from that, it was quick in releasing products which actually solved the problem of merchants and the public at large. Services like 0% fees on any transaction. Products like BharatSwipe and Β Xtraincome card are unique innovations to solve customer problems. They have also come up with innovative gold loans schemes.


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Conclusion

BharatPe has an impressive business model. The whole business is working around solving various pain points of small businesses. Their products are reliable which has led to their word-of-mouth marketing initially. Today they have more than a million merchants using their platforms. BharatPe's business model is a unique model and an entrepreneur can learn a lot from them.

FAQs

What does BharatPe do?

BharatPe is designed as a fintech company to empower small merchants and kirana shop owners. The company brings QR codes for UPI payments, Bharat Swipe, and an array of fintech products, including small business financing and more.

How many people use BharatPe?

BharatPe serves 7.5 million+ merchants in more than 140 cities of India, as of January 2022.

How does BharatPe make money?

BharatPe earns revenue by providing loans to small business merchants. A major portion of the BharatPe revenue comes from its merchants and its lending products.

Who created BharatPe?

Ashneer Grover and Shashvat Nakrani founded BharatPe in 2018.

Is BharatPe a government company?

No, BharatPe is a private fintech company founded by Ashneer Grover and Shashvat Nakrani in 2018.

Who is the CEO of BharatPe?

The current CEO of BharatPe is Suhail Sameer.

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