BharatPe, a prominent player in the fintech sector, has witnessed a substantial increase in its operations following the Reserve Bank of India's (RBI) imposition of restrictions on competitor Paytm's payments bank arm on 31 January 2024.
According to a report by a media house, BharatPe reported a significant surge in merchant onboarding in February 2024, with a remarkable 77 per cent increase compared to the previous month. Additionally, the platform saw a surge of over 47 per cent in website traffic for onboarding inquiries.
The surge in onboarding was particularly notable across different city tiers, with Tier-I cities experiencing a 76 per cent rise, followed by a 63 per cent growth in Tier-II cities and an impressive increase of over 83 per cent in Tier-III cities and beyond. Consequently, the total merchant base surpassed 13 million by the end of February.
A substantial shift was observed among Kirana stores, with over 42 per cent reported to have migrated to alternative platforms such as Mobikwik, BharatPe, PhonePe and GooglePay. This transition was attributed to the uncertainty surrounding Paytm, prompting cautious merchants to ensure uninterrupted UPI payments.
BharatPe witnessed a 100 per cent increase in merchant sign-ups during the first half of February compared to the previous month, with metro cities recording a 104 percent increase and Tier-2 and 3 cities seeing a surge of 95 per cent. This growth was fueled by additional features and offers, including free QR code setup, flat earnings of up to Rs 300 and instant settlements.
In terms of financial performance, BharatPe's losses narrowed to Rs 886 crore in FY23 from Rs 5,594 crore in FY22, with the EBITDA loss also decreasing by Rs 158 crore in FY23. The company's merchant lending business experienced remarkable growth, reaching Rs 5,339 crore, with total loan disbursements amounting to approximately Rs 12,400 crore to date.
Since its inception, BharatPe has secured over $583 million in equity from various investors, including Peak XV Partners, Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management, Dragoneer Investment Group, Steadfast Capital, Steadview Capital and Tiger Global.