In a strategic move to further strengthen its financial services portfolio, unicorn fintech player BharatPe raised its stake in NBFC Trillion Loans to nearly 60%. The investment is pegged at about $8-9 million, through the infusion of fresh capital. The deal is expected to be a critical step in BharatPe’s plan to acquire Trillion Loans fully over the next 24 months, and the move is thought to be a measure to inculcate faith among its external stakeholder community that includes lenders and equity holders.
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BharatPe had originally taken a 51% acquisition in the company in May 2023. The Tiger Global-backed company also inducted onto the NBFC board a host of industry veterans—Ravindra Pandey, Nalin Negi, Sabyasachi Senapati. The latest Coatue-lead investment only goes to further cement the commitment of BharatPe to scaling up its financial services capabilities while optimizing the market potential of Trillion Loans.
Trillion Loans are valued at $100 million currently, and with this improved breathing space given by BharatPe, it will now be able to gain access to new avenues and use that money with optimized efficiency. This investment will also see Trillion Loans operating comfortably within regulatory limits to grow and expand its business in financial services, said a source wanting to be unnamed.
Apart from its stake in Trillion Loans, BharatPe is already trying to increase its stake in Unity Small Finance Bank. At present, BharatPe holds 49% in Unity SFB, while 51% is currently with the Centrum Group. It wants more control and influence in the working of the bank through an increase in the stake.
First up, earlier this year, BharatPe raised a significantly larger debt round, and second, Trillion Loans secured separate debt from Credit Saison. Because the firm is probably focused on padding up financials and expanding the footprint in the larger financial services landscape.
Though it has so far refrained from raising any equity since August 2021, BharatPe, within the last three years, has even managed to rope in various debts. There has been a discussion that the company is on the way to being profitable on a consolidated basis in the ongoing fiscal year, FY25. Operating revenue for BharatPe in FY24 was noted at Rs 1,370 crore, which is an incremental growth of 16%. During the same period, it brought down losses by 70% to Rs 270 crore.
BhartPe’s strategic bets and orientation to profitability are a clear indication of how serious the company is about making large strides towards being perceived as a serious player in the fintech space. These are just the strategic steps BharatPe is taking toward long-term growth and success in financial services.
As BharatPe continues to scale up its financial services, it keeps executing and delivering innovation to its members and capitalizing on new opportunities in rapidly evolving FinTech. Through this clear vision and strategic investments, BharatPe is going to reap benefits from the meaningful inroads it will make in years to come.
