BharatPe - Bringing Happiness To You Offline

Anik Banerjee Anik Banerjee Purbalee Dutta Purbalee Dutta
Oct 25, 2021 14 min read
BharatPe - Bringing Happiness To You Offline

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by BharatPe.

Suffering from code-based payments? At times servers go down and you are unable to make your payment, right? Merchants, retailers, customers, and myriad other businesses and businessmen often suffer from such issues. Embracing digital payment methods is not always smooth though it appears to be most often.

Anyways, now with BharatPe, you can approach your digital payment requirements easily and conveniently without any hassles. Read the BharatPe success story brought out by StartupTalky, which includes the Founders and Team, Business Model, Revenue Model, Funding and Investors, Growth, Competitors, Tagline, Slogan and Logo, Recent News of the brand, and more!

Company Highlights

Startup Name Bharatpe
Headquarters Delhi, India
Sector Fintech
Founders Ashneer Grover, Bhavik Koladiya, Shashvat Nakrani
Founded April 2018

BharatPe - About
BharatPe - Founders And Team
BharatPe - How Does It Work?
BharatPe - Business Model
BharatPe - Revenue Model
BharatPe - Funding And Investors
BharatPe - Tagline, Slogan And Logo
BharatPe - Growth
BharatPe - Competitors
BharatPe - Future Goals
BharatPe โ€“ Recent News
BharatPe - FAQs

BharatPe - About

BharatPe is a QR code-based payment app for offline businessmen and retailers. The company has its headquarters in New Delhi, but there another BharatPe Bangalore office. The app allows its users to accept UPI payments for free through the BharatPe QR. The app helps its users to sign in immediately and they start receiving the funds in their bank account. They started with a mission to make payments free for all its users. Its intention is to help all.

BharatPe - Founders And Team

BharatPe founders are Ashneer Grover, Bhavik Koladiya and Shashvat Nakrani.

Ashneer Grover is the CEO and the Co-founder of BharatPe. Ashneer is from South Delhi, India, and a graduate of the Indian Institute of Technology, Delhi. He was once the new head of new business at PCJ. Furthermore, he headed Corp Dev for Amex India. He was also previously appointed as the CFO of Grofers.

Bhavik Koladiya is another Co-founder of BharatPe, who is popularly known as the Group Head - Product and Technology.

Bhavik Koladiya - Co-founder and Group Head - Product and Technology

Shashvat Nakrani is also the Co-founder of BharatPe. He is an IIT Delhi student, batch 2015-19, who got a bachelor's degree in Textile Technology from the Indian Institute of Technology, Delhi. His hometown is Bhavnagar, India.

Bharatpe Founders
Shashvat Nakrani (left) and Ashneer Grover (right) 

BharatPe - How Does It Work?

As you all know almost all of the merchants spend more time on the app BharatPe. By only this way the company increases its amount to about $2000. Lending businesses are always crucial no matter it's small ones or big ones. So, BharatPe's lending business is also crucial like the others.

It operates an eponymous service to help all offline merchants. ย But such kind of payment apps nearly makes no money by enabling free transactions on their platforms. Those processing UPI payments can not even charge a small commission to merchants. The BharatPe login and interface is also easy to use. BharatPe credit card can also be created after the merchant. account

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BharatPe - Business Model

As everyone knows, especially the merchants, BharatPe business is different Indian payments free company that is serving offline retailers and businessmen/women. They accept payments from 100+ mobile apps downloaded in the Indian mobiles on India's UPI system by offering businesses a single interoperable QR sticker.

The QR can be scanned by and then payments are accepted from all renowned mobile apps such as PayTm, WhatsApp, Mobikwik, Amazon Pay, BHIM, Google Pay, Freecharge and True Caller. Retailers also get immediate credits for transactions made in their bank accounts on the same day. So now you know each one has got its own unique way of running their businesses.

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12% Club

BharatPe has partnered with the NBFCs, which are approved by the RBI, to launch the 12% Club, the first of its kind investment, consumer lending, and borrowing app. The 12% Club app is a significant step forward into the consumer space for BharatPe and will be a huge benefit for the customers with which:

  • Consumers can invest and earn up to 12% of annual interest without any lock-in period.
  • They can borrow at a competitive interest rate of 12%.
  • Customers can borrow up to Rs 10 lacs through this app.
  • They can also avail loans up to Rs 10 lacs without any collaterals for a tenure of up to 3 months
  • Furthermore, they can also withdraw their money, partially or wholly anytime and anywhere.
  • There will be no processing or pre-payment charges for the loans via this platform.
  • The customers can start their investments with as low as Rs 1000 and receive daily credit of interest.

BharatPe is looking forward to achieve an AUM of $ 100 mn and a lending AUM of $ 50 mn from the 12% Club app by the end of the present fiscal.

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BharatPe - Revenue Model

The BharatPe revenue model depends on providing its consumers with a digital payments platform and also has got a separate app for its merchant friends where the company credits them for their transactions digitally as mentioned above. It actually sails for providing credits to the merchants with cheaper interests.

The company counts on the interdependent cyclical connection of credit and application usage to boost the revenue on its platform. For a startup company like BharatPe it's important for them to focus especially on the merchant side of their business.

BharatPe announced that the company had witnessed a 7X growth of its annual revenues, which earlier stood at Rs 110 crore during FY20 stood and has currently surged up to Rs 700 crore in FY21.

BharatPe - Funding And Investors

BharatPe funding has raised a total amount of $720 Million in over 12 rounds it has witnessed. The company is looking to raise Rs 1,300 crores in debt, which seems to be the largest debt round for an Indian startup in 2021.

BharatPe has raised an investment of $370 million from Tiger Global Management LLC along with other existing investors like Dragoneer Investment Group, Coatue Management, and Ribbit Capital on August 4, 2021. With this, the fintech startup's valuation has catapulted to $2.85 billion, thereby becoming the 19th unicorn of 2021 so far. Furthermore, this fundraise also lists BharatPe as one of the Top 5 most valued Fintech startups in India.

In the last debt financing round of October 25, 2021, BharatPe successfully raised Rs 100 crores ($13.32 mn) from MAS Financial Services Pvt Ltd. The company will use this fund to strengthen its merchant lending vertical. BharatPe is planning to raise around $250 mn worth of debt raise by the end of FY22.

Date Transaction Name Money Raised Lead Investors
October 25, 2021 Debt Financing $13.32 million MAS Financial Services Private Limited
August 19, 2021 Debt Financing $13.44 million Northern Arc
August 19, 2021 Debt Financing $13.44 million IIFL Wealth
August 4, 2021 Series E $370 million Tiger Global Management LLC, Coatue Management and Ribbit Capital
August 4, 2021 Secondary Market $20 Million -
May 10, 2021 Debt Financing $6.7 million Northern Arc
February 11, 2021 Series D $108 million Coatue Management
January 6, 2021 Debt Financing $33.5 million Alteria Capital, Innoven Capital and Trifecta Capital
February 24, 2020 Series C $75 Million Coatue and Rabbit Capital
June 4, 2019 Series B $50 Million Insight Partners, Rabbit Capital
February 21, 2019 Series A $14.5 Million Sequoia Capital India
October 1, 2018 Seed Round $2 Million BEENEXT and Sequoia Capital India

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The tagline of the company is 'Ab se Dukandar is king'. It also says 'Apne Parivar Aur Shop Ko Rakhe Insured. It has launched India's first UPI Bahi Khata for merchants. It's the first Fintech startup in India enabling merchants to pay offline. The BharatPe logo is the ย property of the trademark owners.

BharatPe logo
BharatPe logo

BharatPe - Growth

The BharatPe news and recent studies say that the company is growing rapidly and presently it's the 4th largest player in the UPI portion after Google Pay, PhonePe and PayTm. And the company has achieved this growth by spending very little money on it. BharatPe is in the 3rd spot in the private POS category. The platform has introduced ย the digital gold product on its platform for merchants in association with Safegold which is called BharatPe Gold scheme.

It had launched BharatSwipe, its disruptive card payment acceptance machine in the latter half of 2020. BharatSwipe is a zero rental Swipe machine, which is the first of such systems that India has seen, and therefore, it received an overwhelming response right from its inception. The overall business of BharatPe received a huge boost with the introduction of BharatSwipe.

Furthermore, it has also helped the company scale up its business rapidly, and contribute around 20% to the overall payments Transaction Processed Value (TPV) of the company. BharatPe has installed over 1 lac BharatSwipe machines across 16 cities in the country that supports transactions of over Rs. 1400 crores every month. Furthermore, it has also received an overwhelming response from small merchants across segments including Kirana store owners, restaurant owners, and entrepreneurs with 4-5 outlets.

BharatPe was valued at $922 million on February 2021, from where it turned into a unicorn on August 4, 2021, when it raised around $370 million in its Series E round from Tiger Global Management, Dragoneer Investment Group, Coatue Management, where it was valued at $2.85 billion. This remarkable episode of growth can sum up that the company witnessed a three-fold jump in its valuation within just six months. BharatPe is now a unicorn, the 19th unicorn startup in 2021, as reported on August 4, 2021, and is counted among the Top 5 most valued Fintech startups in India.

The lending vertical of BharatPe has exponentially increased over the last 1.5 years. The company has already been successful in disbursing over $ 300 million in unsecured loans to 2 lac+ merchant partners, with an outstanding loan book of over $ 100 million.

Furthermore, the company has been estimated to have boarded around 24 lac+ merchant members on its platform by the end of FY20. This came at a cost though. The merchant acquisitions relied heavily on customer acquisitions and brand development, which includes advertising and promotional activities, thereby resulting in shooting up expenses to Rs 43.2 crore during FY20, which was only at Rs 4.8 crore in FY19, a surge of ย 9X. Here are some of the growth highlights of BharatPe, as reported on September 16, 2021:

  • BharatPe had claims to have disbursed loans worth Rs 150 crore to its member merchants during FY20.
  • It has reportedly earned Rs 6.94 crore from its financial assets during the same fiscal.
  • The annual expenditure of BharatPe saw around an 895.3% jump, which rose to Rs 229.12 crore during FY20 from Rs 23.02 crore in FY19.
  • The company, as assessed, spent Rs 38.44 to earn a single rupee of revenue during the fiscal year, which ended in March 2020.
  • The IT costs of BharatPe saw a jump of around 7.3X. It spiked up to Rs 4.06 crore. Furthermore, the legal and professional costs also shot up 6X to Rs 5.2 crore during FY20.
  • BharatPe's employee benefit costs, which made up 12.2% of the annual costs, witnessed a surge of 11.1X to Rs 28 crore during FY20.
  • The company reported an annual loss of Rs 216.32 crore, ballooning to 9.4X, which was only Rs 23.02 crore in FY19.
  • Demonstrating an abysmal EBITDA margin of -1684.4% during FY20, the present cash burn of BharatPe looks like a tough stain on the fabric of the sustenance of the company.

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BharatPe - Competitors

BharatPe competitors are Mamo Pay, PayTm, PhonePe, Lunar, albo and eXPO.

Let's look into the few comparisons below -

BharatPe vs albo

  • BharatPe is a fintech company that operates a QR based payment app for offline retailers and businesses headquartered in New Delhi with Twitter followers of 4.4k whereas albo is a mobile banking app that helps it's users to manage their money headquartered in Mexico with Twitter followers of 4.9k.

BharatPe vs PhonePe

  • BharatPe did merchant transactions worth $76 million and PhonePe did it at worth $1 billion including UPI and cards.
  • PhonePe thinks that BharatPe did cheat their name and they went to the court about the matter. The case is still on. Researches say that BharatPe is better than PhonePe especially due to their QR code payment system.

BharatPe vs PayTm

  • BharatPe and PayTm both are having almost the same features. They both provide loans after the users complete a certain amount of transaction limit. Both are fully loaded with certain sorts of interesting features which attracts people a lot. PayTm often gives different kinds of offers such as buy 1 get 1 free, etc. Experts say that PayTm is way better than BharatPe because it has got few complaints than what BharatPe has.

BharatPe - Future Goals

The company desired something new and this year they launched a button named Paisa Bolega. This button converts the shopkeeper's phone into a loudspeaker, announcing the value of the transaction received loudly. Within the end of this year, the company desires to disburse around Rs. 700 crores.

They say that there will be rising demands of the shopkeepers so this is their further plan. The company also disbursed around Rs 140 crores recently. The founder of the company says that there has been no development in the loan demand of the shopkeepers recently and so they plan to move forward with it and they think that rental payments and stocking up for inventory payments will soon rise.

BharatPe announced its future plans of scaling up its POS business via a PR dated July 15, 2021. BharatPe, which now stands 3rd when it comes to private POS solutions, plans to expand its POS business, BharatSwipe by 3x. Eyeing growth, BharatPe is aiming to reach $ 6bn in annualized TPV by the end of FY22. The company is further looking to widen its overall reach by 5x and make BharatSwipe popular across 80 cities in India by the end of the next financial year.

BharatPe is looking forward to scaling up its lending vertical aggressively and achieve around 10x growth in lending by FY23.

BharatPe โ€“ Recent News

12th October 2021 - BharatPe ropes in former SBI chief Rajnish Kumar as the new chairman of its board. Rajnish will help lay down the short-term and long-term strategies of the company along with collaborating with the other board members and CXOs on primary business and regulatory initiatives. ย 

24th August 2021 - BharatPe launched the 12% Club on August 24, 2021. 12% Club is the first-of-its-kind consumer product and will now be available at Google Play Store and Apple App Store for downloads

18th August 2021 - BharatPe concludes another debt financing round mopping up Rs 200 crores ($26.89 Mn) in total from IIFL and Northern Arc, which happens to be the 7th fundraising round for the company in 2021.

29th July 2021 - According to the recent news, BharatPe has become the first fintech startup to win a rare Small Finance Bank (SFB) licence from the Reserve Bank of India (RBI). This un-named SFB will be a 50 โ€“ 50% partnership between BharatPe parent company Resilient Innovations and Cetrum Finance. The fintech company is said to use this sought after SFB licence to launch BharatPe merchant focussed bank in the next three to four months, which is the first in the country.

The company is also planning to launch huge range of products in the merchant and consumer lending space. Which is why BharatPe hiring more than 100 employees for its tech team by March 2022. Apart from that, it also announced its first Referral and Joining Policy, under which it will offer incentives to both new employees and the existing employees who will refer new capable employees to the company.

These incentives are said to include gadget, appraisal and perks. While the new 100 engineers who will be hired to build the next-generation banking will also be offered incentives and BharatPe gifts like BMW superbikes and iPad Pros, among other luxury goods. This way the company is aiming to strengthen its tech team.

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BharatPe - FAQs

What is BharatPe app?

A pioneer in UPI payments and digital money lending for merchants. It is a payment solution application exclusively designed for merchants that can accept payments from any UPI payment app through a single BharatPe QR Code.

Who are BharatPe founders?

BharatPe founders are - Ashneer Grover, Bhavik Koladiya, Shashvat Nakrani.

Is BharatPe a government company?

No. BharatPe is a private fintech company.

Who is the owner of BharatPe?

The owner of BharatPe, listed as Co-founders are Ashneer Grover, Bhavik Koladiya, Shashvat Nakrani.

What is BharatPe Balance?

BharatPe Balance gives the user information on their daily QR collections, balance in investment account and their available loan limit.

How does BharatPe earn money?

The holding entity of BharatPe, Resilient Innovations Pvt Ltd, and its lending operations have been successful in earning a revenue of Rs 5.96 crore during FY20, in contrast to FY19, when they failed to earn any operating revenue. This income was mainly generated by the small ticket unsecured loans, which are offered to the merchants, and on the collection of commissions on transactions.

Is BharatPe safe to invest in?

Yes, it is safe to invest in BharatPe, as a lot of people use the app on a daily basis.

Is BharatPe Profitable?

BharatPe declared that it had incurred an annual loss of Rs 216.32 crore, which ballooned by 9.4X from Rs 23.02 crore that it witnessed in FY19. The EBITDA margin of BharatPe was reported to be -1684.4% during FY20.

How to delete BharatPe account?

To delete BharatPe account the user can go to Settings, and then select the Deactivate account option.

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