BharatPe, the prominent player in India’s fintech landscape, has declared its attainment of profitability merely five years after its founding in 2018. The announcement was made by the company’s CFO and interim CEO, Nalin Negi, on November 28, signifying a significant leap forward for the financial technology giant.
Positive EBITDA Marks Pivotal Moment
BharatPe’s achievement is underscored by its positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the month of October 2023. This marks a departure from its previous EBITDA burn, which averaged Rs. 60 crore per month in the fiscal year 2023. The milestone reflects the company’s commitment to financial sustainability and has been hailed as a testament to the trust placed in BharatPe by its extensive network of 1.3 crore merchant partners.
Impressive Financial Metrics Reflect Robust Growth
The fintech major reported an annualised revenue exceeding ₹1,500 crore, marking a substantial 31% increase compared to the same month in the previous year. Additionally, BharatPe facilitated over ₹640 crore worth of loans to its merchants in October, showcasing a remarkable 36% year-on-year growth. These impressive financial metrics further solidify BharatPe’s position as a key player in India’s burgeoning fintech sector.
Strategic Focus on Scaling Business Verticals
Nalin Negi outlined BharatPe’s strategic focus following the profitability milestone, stating, “We will launch new products tailored for our merchant partners and focus on the development of our consumer and NBFC businesses.” The company, backed by Peak XV Partners, now aims to leverage its profitability to further scale its lending, Point of Sale (POS), and soundbox businesses, charting a path for sustained growth and innovation.
Investor Confidence and Path to Public Listing
Harshjit Sethi, MD of Peak XV Partners, expressed confidence in BharatPe’s trajectory, stating, “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.” He highlighted strategic steps taken by BharatPe, including board expansion, key licenses from the Reserve Bank of India (RBI), and attracting top talent, positioning the company on a path toward becoming a public entity.
Legal Developments Amidst Achievements
However, BharatPe’s profitability announcement comes against a backdrop involving the company’s founder, Ashneer Grover, who was expelled last year. On the same day as the profitability revelation, the Delhi High Court reprimanded Grover for the use of “unparliamentary” language against the company. Despite legal challenges, BharatPe’s achievement marks a pivotal chapter in its journey, reinforcing its standing as a frontrunner in India’s fintech arena.
