Fintech player BharatPe has seen a significant increase in its operations following the restrictions imposed by the Reserve Bank of India (RBI) on competitor Paytm’s payments banking arm on January 31, 2024.
In February 2024, BharatPe reported a 77 percent increase in merchant onboarding compared to the previous month, the Hindu Businessline reported. In addition, the platform’s website traffic for onboarding surveys has increased by more than 47 percent, BharatPe told the paper.
The increase in boardings was particularly notable in Tier-I cities, which saw an increase of 76 percent, followed by a 63 percent increase in Tier-II cities, it added. In addition, Tier-III cities and beyond experienced an impressive growth rate of over 83 percent, leading to the total business base surpassing 13 million by the end of February, according to the report.
The majority change took place in the first 15 days after the central bank’s restrictions on Paytm Payments Bank, it added.
Change in Kirana Stores
A major shift has been observed in Kirana stores, with over 42 percent reported to have migrated to alternative platforms such as Mobikwik, BharatPe, PhonePe and GooglePay, according to the report.
This transition has been attributed to the uncertainty surrounding Paytm, prompting cautious merchants to ensure uninterrupted UPI payments. Earlier, Paytm held about 69 percent market share among Kirana stores.
During the first half of February, BharatPe witnessed a 100 percent increase in merchant registrations compared to the previous month. This growth was particularly pronounced in metro cities, registering a 104 percent growth, and Tier-2 and 3 cities saw a 95 percent growth.
Additional features and offers, including free QR code setup, flat earnings from up to ₹300, and immediate settlements, contributed to this increase.
Financial Performance
BharatPe’s financial performance showed signs of improvement, with its loss narrowing to ₹886 crore in FY23 from ₹5,594 crore in FY22. The EBITDA loss also decreased by ₹158 crore in FY23, as disclosed by the fintech firm.
In particular, its merchant lending business experienced a remarkable growth of 129 percent, reaching ₹5,339 crore, with total borrowing costs amounting to approx ₹12,400 crore so far.
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.
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Published: 26 Mar 2024, 09:41 IST