Fintech Firm BharatPe and its NBFC Partner Trillion Loans Raise Debt Funds
Three points you will get to know in this article:
- BharatPe concludes a $100 million debt round and anticipates a substantial investment from InnoVen Capital.
- Acquisition of Trillion Loans and strategic board appointments align with expansion plans.
- Despite significant losses in FY23, BharatPe achieves a profitable month and disburses substantial loans, showcasing financial empowerment commitment.
BharatPe, the fintech company, has successfully concluded a $100 million debt round, as per information from sources familiar with the matter. This latest debt infusion marks a significant milestone for the Delhi-based company, coming more than two years after its previous debt round.
According to the sources, InnoVen Capital is on the verge of finalizing one of its most substantial investments in BharatPe, anticipated to fall within the $60-70 million range.
Strategic Expansion through Acquisitions and Board Appointments
Meanwhile, BharatPe’s non-banking financial company (NBFC) arm, Trillion Loans, secured a distinct debt round from Credit Saison, as disclosed by insiders. Following BharatPe’s acquisition of a controlling 51% stake in Trillion Loans in May 2023, the NBFC arm witnessed strategic additions to its board with the appointment of Ravindra Pandey, Nalin Negi, and Sabyasachi Senapati. This move aligns with the expansion and development plans of the Tiger Global-backed firm.
Preference for Debt Financing over Equity and Past Funding Achievements
“BharatPe has opted for debt over equity as the company is on the verge of reaching a break-even point and is currently averse to diluting its equity stake,” shared another source, who preferred to remain anonymous due to the confidential nature of the discussions.
The latest infusion of equity for BharatPe occurred in August 2021, marking a significant milestone with a Series E round raising $370 million. This funding propelled the company into the esteemed unicorn club.
Financial Performance and Revenue Milestones
BharatPe chose not to provide comments, and inquiries directed to InnoVen and Credit Saison did not yield immediate responses. Rest assured, we will update the post as soon as any information becomes available.
BharatPe successfully secured more than $650 million in a combination of equity and debt from reputable investors such as Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Ribbit Capital, and other contributors. In the realm of debt financing, BharatPe accomplished a remarkable feat by raising over Rs 600 crore or $84 million during the entirety of 2021.
Adding to its triumphs, BharatPe surpassed the coveted Rs 1,000 crore revenue milestone in the fiscal year 2023. The company witnessed a substantial twofold surge in its operating revenue, reaching Rs 1,029 crore in the past fiscal year compared to Rs 457 crore in FY22. However, the journey wasn’t without challenges as the firm reported losses amounting to Rs 941 crore in FY23, a slight increase from Rs 834 crore in the preceding year.
Profits and Loan Disbursement Achievements
A glimmer of positivity emerged in the ongoing fiscal year, with BharatPe celebrating its inaugural profitable month in October.
Highlighting its commitment to financial empowerment, BharatPe proudly disclosed that it disbursed loans exceeding Rs 12,400 crore. Impressively, the company facilitated an additional Rs 640 crore in loans to merchants within a single month through strategic partnerships with its Non-Banking Financial Companies (NBFCs).
In conclusion, BharatPe, a Delhi-based fintech company, recently achieved a significant milestone by concluding a $100 million debt round, with InnoVen Capital nearing a substantial investment of $60-70 million. Furthermore, its non-banking financial company (NBFC) arm, Trillion Loans, secured a separate debt round from Credit Saison after BharatPe’s acquisition of a controlling 51% stake. This strategic move aligns with the firm’s expansion plans, supported by past funding successes and revenue milestones. Despite reporting substantial losses in FY23, the company celebrated its first profitable month in October and showcased its commitment to financial empowerment by disbursing substantial loans to merchants.
