In one of the largest fundraising exercises, leading fintech firm BharatPe raised Rs 85 crore, almost $10 million, in debt funding through non-convertible debentures. This is the second debt infusion for the Peak XV and Coatue-backed company in the year 2024 and becomes very strategic in terms of financial management and growth.
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BharatPe’s board has approved the issuance of 500 Series E1 debentures with a face value of Rs 10,00,000 and 3,500 Series F1 debentures at a face value of Rs 1,00,000 each. The strategic move brought huge investments worth Rs 50 crore from Trifecta Venture Debt and Rs 35 crore from InnoVen Capital. The details were disclosed in the regulatory filing with the Registrar of Companies by the company.
Sources close to Entrackr said BharatPe had earlier closed a $100 million debt round this year. InnoVen Capital was likely to invest $60-70 million in BharatPe and the rest was provided by Credit Saison to its NBFC arm, Trillion Loans. This recent InnoVen debt could have been part of this larger funding plan. BharatPe has been reached out for confirmation on whether this is a new investment or part of the existing one.
Insiders said BharatPe opted for debt financing as the company was approaching break-even and did not want to dilute its equity. This has been a strategic call in keeping with the Company’s long-term financial goals and thus instills belief in its ability to create long-term sustainable growth. BharatPe’s last equity round was in August 2021 when it entered the unicorn club. To date, the company has raised over $650 million in equity and debt from such leading investors as Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, and Ribbit Capital.
According to financial performance reports, operating revenues of BharatPe jumped 16 per cent in FY24 to Rs 1,370 crore from Rs 1,029 crore in FY23. Further, the company said that losses have been reduced by 70 per cent to come down to Rs 270 crore in the last fiscal year. This kind of financial resilience and the trajectory of growth show how strong the business model of BharatPe is and what effective management strategies it has in place.
The latest debt infusion from Trifecta and InnoVen is touted to further strengthen the financial stability of BharatPe and back its expansion plans. As the firm continues to innovate and widen its services basket, this strategic funding will turn out to be quite critical in taking its mission of empowering merchants and enhancing financial inclusion pan-India to reality.
This recent debt funding from Trifecta and InnoVen essentially reaffirmed strategic planning vis-à-vis financing options for BharatPe, as well as its commitment to growth. As this fintech firm crawls closer toward breaking even, it will surely help drive its ambitious expansion plans and further cement its position among the strong players in the financial technology domain.
