BharatPe is a very well-known company for its offerings and the controversy that sparked three years back. Ashneer Grover, who is also famous as a shark, was out of the company, and several discussions revolved back to that time. The story of BharatPe is impressive and often inspiring despite having these controversies. It all started small but scaled up so fast, and today it is one of the most celebrated startups in India. Recent news has again put BharatPe in the news. The news is about the recent funding that they are planning on raising. BharatPe is in advanced talks to raise about $80 to $100 million in a pre-IPO round, which is led by Coatue Management. And even several other sources say that the company is planning for an IPO but not this year; mostly it will take place next financial year. An IPO is most probably one of the biggest milestones for any startup. In this article, we’ll dive deeper into BharatPe’s journey by looking at how it was before Ashneer Grover’s exit, how it stands today, and how the company is performing as it gears up for the next big leap.
BharatPe’s story began in 2018, when Ashneer Grover and Shashvat Nakrani set out with a simple mission to make digital payments easier and more profitable for small merchants across India. During that period UPI payments were growing fast but were still fragmented; BharatPe stood out by offering a single interoperable QR code that worked across all payment apps. Within months, BharatPe became a hit among shopkeepers, small businesses, and street vendors. Its zero MDR (merchant discount rate) policy, cashback offers, and fast settlement made it an attractive choice. The focus was clear, which was to acquire merchants first and then expand into lending and other services. The company soon entered the merchant lending space, offering small loans to shopkeepers using payment data to assess creditworthiness. It also ventured into new products like BharatSwipe, a POS machine for card payments, and co-launched Unity Small Finance Bank with Centrum Financial Services to strengthen its foothold in the financial ecosystem. So, in a small period, they have done many things and raised millions, which led to the valuation of about $2.85 billion.
Exactly during the same period, the controversy started. In early 2022, BharatPe’s growth narrative was dominated by a high-profile fallout between Ashneer Grover and the company’s board. There are allegations of financial misconduct that led to Grover’s resignation in March 2022. There are a set of challenges, and the company was at a good pace of growth. But what happened next? Well, numbers are something that tells us how the company is doing. During the financial year 2021-22, the company generated about INR 457 crore, but in FY 2024-25, it generated about INR 1667 crore, which shows the growth trajectory of the company. Though there are several problems, the growth didn’t stop. Well, this is where we need to discuss the developments that took place in BharatPe which worked despite the controversies.
The company underwent a leadership change, and Nalin Negi stepped in as CEO, and BharatPe focused on tightening governance, reducing burn rates, and building a sustainable business model. Debt funding was raised to strengthen the lending arm, and the company moved closer to EBITDA profitability. Well, there are some reasons why it scaled so fast, despite having the turbulences going on. One of the key strengths of the company is its offline distribution. As of 2021, they had almost 7 million merchants, and their field agents have visited multiple stores in more than 400 cities. Then comes the second reason, which is their lending business. They started offering small business loans to the merchants by understanding their user behaviour. This has actually worked and brought in more revenue for the company over the period. Acquisitions have also worked for the company, and it has helped the company in offering the services. Not just BharatPe; later, many companies started following this, which is offering loans, but they almost BharatPe tried and targeted a niche segment. The credit gap in India is so huge, especially in small businesses. Getting a loan is not easy for them, but BharatPe, by offering loans to this niche segment, is a clear win-win for both the company and the merchants. So, when you are actually offering the services that markets need, numbers will always show you the growth.
BharatPe ended FY25 on a strong note, posting an adjusted profit before tax of ₹6 crore (excluding ESOP expenses), which is a sharp turnaround from the ₹342 crore loss recorded in FY24. CEO Nalin Negi emphasized that such consistent performance is crucial for building investor confidence ahead of the company’s planned public listing. The company is backed by marquee investors such as Peak XV Partners, Tiger Global, Beenext, Steadfast Capital, and Ribbit Capital. BharatPe stands out in the fintech landscape as the only player with a combination of a non-banking financial company arm (Trillionloans), a stake in Unity Small Finance Bank, and an online payment aggregator license. In April 2025, the Reserve Bank of India granted BharatPe final authorization to operate as an online payment aggregator, which is a milestone the company says will help it scale its payment solutions, deepen its presence in tier 2 and tier 3 cities, and invest in advanced technology infrastructure for high-growth sectors. Further strengthening its lending capabilities, BharatPe recently increased its stake in Trillionloans to 74%, positioning itself for greater control and expansion in the credit segment. So, with all of these developments within the company, it is growing faster. If this company goes for an IPO, it will be a key moment to watch.
