Five years after its launch, Indian fintech major Bharatpe has turned profitable. The company in an official statement said that BharatPe has turned Ebitda positive in October and recored an annualised revenue of Rs 1,500 crore
The Accounting Rate of Return (ARR) was 31% more than from the year ago period mainly on the back of significant growth in its lending and payments business. ARR is a formula used to calculate the net income expected from an investment or asset compared to the initial cost of investment.
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Bharatpe which launched its loan facility in 2019 has facilitated loans totaling over Rs 12,400 crore. In October alone, the fintech facilitated over Rs 640 crore worth of loans to its merchants. This is 36% more than on a year-on-year basis. The company recorded monthly total payment value (TPV) of over Rs. 14,000 crores across its diverse range of payment products.
"The company has significantly cut down its EBITDA burn—which was averaging at Rs. 60 Cr per month in FY23—to attain EBITDA positivity. This significant milestone in conjunction with strong growth is a testament to the efforts of the team, enabled by strategic guidance from the Board. The company will continue taking strides toward being a market leading financial services platform for the 50 million small businesses across India," Bharatpe said in a statement
In equity till date the fintech firm has raised over US$ 583 million. As per Business Today, the company’s list of marquee investors includes Peak XV Partners (formerly known as Sequoia Capital India), Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management,Dragoneer Investment Group, Steadfast Capital,Steadview Capital and Tiger Global.
BharatPe is backed by Peak XV Partners. Harshjit Sethi, MD, Peak XV has expressed his happiness over the company achieving the profitable milestone
"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