BharatPe Eyes IPO, Plans ₹800-1,200 Crore Pre-IPO Funding Round
BharatPe is preparing for its IPO and has begun engaging bankers for the listing. The company aims to raise ₹800-1,200 crore in a pre-IPO funding round, seeking a valuation of 11.5-12 times its revenues. BharatPe achieved profitability in FY25, seven years after launch, with a 7.30% profit margin. The company's business model focuses heavily on credit services, contributing 57% of its revenue. BharatPe recently received RBI approval to operate as a payment aggregator and is in talks to raise $80-100 million from Coatue Management.
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BharatPe, the fintech giant, is gearing up for its initial public offering (IPO) and has initiated the process of engaging bankers for the public listing. In a strategic move preceding the IPO, the company is targeting a pre-IPO funding round of ₹800-1,200 crore.
Valuation and Comparison
The company is reportedly seeking a valuation of 11.5-12 times its revenues for the pre-IPO round. While this valuation is lower than its peak of ₹20,000 crore in 2021, it aligns with the current market multiple of its competitor, Paytm, which trades at 11x revenue.
Financial Performance
BharatPe has demonstrated strong financial performance, achieving profitability in FY25, just seven years after its launch. This timeline is notably shorter than Paytm's journey to profitability, which took 15 years, reaching the milestone in FY26.
Comparative Analysis
| Metric | BharatPe | Paytm |
|---|---|---|
| Revenue (FY25) | ₹1,500.00 crore | ₹6,900.00 crore |
| Time to Profitability | 7 years | 15 years |
| Profit Margin | 7.30% | 4.00% |
| Credit Revenue Share | 57.00% | 27.00% |
While Paytm maintains a larger scale with higher revenues, a bigger merchant base, and greater transaction volumes, BharatPe showcases better profit margins at 7.30% compared to Paytm's 4.00%.
Business Focus
BharatPe's business model heavily emphasizes credit services, which contribute to 57.00% of its revenue. In contrast, credit accounts for 27.00% of Paytm's revenue stream.
Recent Developments
The company has recently achieved a significant milestone by securing approval from the Reserve Bank of India (RBI) to operate as a payment aggregator. This regulatory green light is expected to bolster BharatPe's position in the fintech space.
Upcoming Funding
In addition to its IPO preparations, BharatPe is reportedly in advanced discussions to raise $80-100 million from Coatue Management. This potential investment could further strengthen the company's financial position ahead of its public offering.
As BharatPe moves forward with its IPO plans, the fintech sector will be watching closely to see how this relatively young company performs in the public markets, especially given its rapid path to profitability and focus on credit services.
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