In a significant financial update, BharatPe, a fintech startup backed by Peak XV Partners, revealed that its consolidated operating revenue for the fiscal year 2022-23 (FY23) crossed the INR 1,000 Cr mark, reaching INR 1,028.9 Cr. The Delhi NCR-based unicorn witnessed a substantial 125% growth in operating revenue compared to the previous fiscal year. Despite this impressive performance, the startup reported a net loss of INR 926.9 Cr in FY23, reflecting a 12% increase from the previous fiscal year.
Key Highlights:
- Operating Revenue: Achieved a remarkable 125% YoY growth, surpassing INR 1,000 Cr.
- Net Loss: Increased by 12%, reaching INR 926.9 Cr in FY23.
- Total Expenditure: Rose by 39% to INR 2,108.5 Cr, with significant increases in employee costs and transaction processing charges.
BharatPe’s Business Expansion:
BharatPe’s revenue sources include transaction and service fees, allied payments, and lending services. The startup serves as a lending services provider (LSP) for its financing partners and offers digital services to merchants. In FY23, BharatPe’s merchant lending business experienced exceptional growth, witnessing a 129% increase in the value of loans disbursed, totaling INR 5,339 Cr.
The company introduced new services such as QR codes, credit card bill payments, and utility payments during the year. Despite these expansions, BharatPe faced increased total expenditure, including legal costs, financial guarantee expenses, and transaction processing charges.
Expense Breakdown:
- Employee Benefit Expenditure: Rose by 65% to INR 304.4 Cr, indicating potential workforce expansion.
- Transaction Processing Charges: Surged by 74% to INR 395.5 Cr.
- Financial Guarantee Expenses: Marginally increased to INR 268.2 Cr.
- Legal Cost: Rose by 20% to INR 44.5 Cr.
Cash Position and Legal Challenges:
BharatPe’s cash and cash equivalents stood at INR 508.3 Cr at the end of FY23. The fintech startup is involved in various legal battles, contributing to a 20% increase in legal costs.
