BharatPe is a fintech company based in India that provides digital payment solutions and financial services to small and medium-sized businesses (SMBs). It offers a range of services, including QR code-based payments, UPI payments, point of sale (POS) machines, loans, and insurance products. Also, it launched a 12% club to help users earn 12% interest on their savings and lendings. Here, we will shed light on BharatPe shareholders’ breakdown & funding valuations.
As per the latest information available, BharatPe was valued at $2.75 billion. Also, it raised $424.2 million in funding across 8 rounds (according to PitchBook). The company’s largest investors include Sequoia Capital, Coatue Management, Insight Partners, Ribbit Capital, etc. Let’s look at the latest shareholding structure of BharatPe-
|Shareholder’s Name||Percentage of Shares Owned|
|Grace Software Holdings||9.22%|
Recently, one of the investors named Ashneer Grover was accused of cheating and embezzlement of funds. He holds approx. 8.7% stake in BharatPe. Out of which 1.4% was not vested and was released after he resigned from the board of the company. Also, a conflict is going on between two co-founders Bhavik Koladia and Ashneer Grover over the former’s stake in the company. Thereafter, Grover resigned from the company.
Fundings so far & Valuation
Do you know BharatPe is one of the most active startups in India that raised money in equity? It became a Unicorn after receiving massive funds from Tiger Global in the Series E round. It raised $350 million in total in the latest funding rounds. Thereafter, it became one of the most valued startups after Paytm, PhonePe, Razorpay, and Pine Labs.
Let’s look at the latest fundings rounds of BharatPe-
|Venture Capitalist||Funding Amount|
|Tiger Global||$100 million (Rs.818 crores)|
|Sequoia Capital||$50 million (Rs.409 crores)|
|Coatue Management||$50 million (Rs.409 crores)|
|Insight Partners||$50 million (Rs.409 crores)|
|Ribbit Capital||$25 million (Rs.204 crores)|
|Ampolo||$25 million (Rs.204 crores)|
|Dragoneer International||$25 million (Rs.204 crores)|
|Steadview Capital||$25 million (Rs.204 crores)|
Thus, BharatPe’s latest money valuation is $2.9 billion.
Is BharatPe profitable?
Now, the obvious question that you may ask is about the company’s profitability. “Is BharatPe profitable in spite of raising enormous funds and with a valuation of $2.9 billion?” You will get the answer after looking at the following data-
|BharatPe’s Financials||Amount (in crores)|
|Market Valuation||$2.9 billion (23,722 crores)|
|Revenue Earned||Rs.456.8 crore|
|Profit/Loss||Loss of Rs.828.8 crore|
Now, you must have got a clear answer about the above question. So the answer is a “No.” BharatPe was not profitable in the fiscal year 2022. Although it earned good revenue from its numerous revenue sources. However, its expenses exceeded the threshold due to which it drowned in humongous losses.
BharatPe earned revenue from the following sources-
|Revenue Sources||Amount Earned|
|Commission Income||Rs.151.85 crore|
|Point of Sale Machines||Rs.126.82 crore|
|Loyalty Points and Related Services||Rs.108.5 crore|
|Other Operating revenue||Rs.69.63 crore|
Now look at the following expenses that led to deep losses for the company “BharatPe.”
|Financial Guarantee Expenses||Rs.266.6 crore|
|Marketing & Business Promotion||Rs.245.5 crore|
|Transaction Processing Charges||Rs.227 crore|
|Outsourced Service Cost||Rs.168 crore|
|Employee benefits expense||Rs.184.8 crore|
|IT and Communications expense||Rs.105.6 crore|
|Other expenses||Rs.285.6 crore|
BharatPe aims to help small businesses accept digital payments easily and grow their business by providing them with access to affordable credit and other financial services. The company has rapidly grown its user base since its launch in 2018 and has become one of the leading players in India’s digital payments industry. However, in FY22 the losses soared to Rs.828.8 crores. As per the company, it invested heavily in expenses like marketing, financial guarantee, IT and communications, etc. Eventually, BharatPe shareholders and the company are anticipating higher returns in the future!