BharatPe Concludes $100 Mn Debt Round with Backing from Peak XV

Fintech giant BharatPe, backed by Peak XV Partners, has successfully concluded its $100 Mn debt round, signaling a significant financial milestone for the New Delhi-based startup. The latest debt round comes after a hiatus of more than two years and aligns with BharatPe’s strategic approach to secure debt over equity as it nears break-even.

Key Points:

• BharatPe’s new debt round, aimed at securing $100 Mn, marks a crucial phase in the company’s funding strategy as it approaches break-even.
• InnoVen Capital is reportedly on the verge of deploying one of its largest investments in BharatPe, with an estimated range of $60-70 Mn, according to an anonymous source cited by Entrackr.
• BharatPe’s NBFC arm, Trillion Loans, has also raised a separate debt round from Credit Saison, emphasizing the company’s diversified financial initiatives.
• The acquisition of a 51% stake in Trillion Loans last year further strengthens BharatPe’s foothold in the financial landscape, providing a range of loans to SMEs and retail consumers.
• The fintech unicorn’s decision to opt for debt aligns with its strategic approach to avoid equity dilution, especially as the company approaches a pivotal break-even point.
• BharatPe is in the process of securing INR 500 Cr debt through unlisted non-convertible debentures (NCDs) in multiple tranches throughout 2024.

Financial Highlights:

• In FY23, BharatPe reported a remarkable 182% increase in standalone revenue from operations, reaching INR 904 Cr compared to INR 321 Cr in the previous fiscal year.
• The startup showcased a significant improvement in its financial health, with a loss before tax narrowing by 84% to INR 886 Cr in FY23 from INR 5,594 Cr in FY22.
• EBITDA loss also witnessed a decline of approximately INR 158 Cr in FY23, indicating positive trends in the company’s financial performance.

Strategic Initiatives:

• BharatPe is reportedly in the process of separating its lending service provider (LSP) business from the main entity, establishing a new wholly-owned subsidiary named BharatPe Money.