BharatPe turns EBITDA positive for the first time
Fintech unicorn BharatPe announced on Tuesday that it has turned EBITDA positive in October 2023, with annualized revenue surpassing Rs. 1,500 crore. EBITDA, short for earnings before interest, taxes, depreciation, and amortization, serves as an indicator of core corporate profitability. BharatPe, which allows merchants to accept payments from various popular consumer apps, said its financial accomplishment is due to steady growth across all business sectors.
Huge reduction in EBITDA burn
The company disclosed that it hugely reduced its average EBITDA burn of Rs. 60 crore per month in FY23 to turn EBITDA positive. BharatPe's lending vertical has seen consistent growth in recent months, with loans exceeding Rs. 640 crore for merchants in October, a 36% year-on-year increase. This was achieved in collaboration with its non-banking financial company (NBFC) partners.
Growth across verticals and soundbox transactions
BharatPe experienced growth across multiple verticals, including its payment products. The fintech firm also saw a significant increase in the number and value of transactions conducted on its soundbox devices. In October, the company recorded a total payment volume (TPV) of over Rs. 14,000 crore across its diverse range of payment products. TPV is a measure of the gross value of payments successfully processed through a payment platform within a specific timeframe.
BharatPe's future plans
Nalin Negi, CFO and interim CEO of BharatPe, stated, "This milestone reflects the trust bestowed upon us by our vast network of over 1.3 crores merchant partners." He added that the company will continue to serve its merchant partners and customers while maintaining sustained profitability across business lines. In the coming months, BharatPe plans to scale its lending, POS, and soundbox businesses, launch new products tailored for merchant partners, and develop its consumer and NBFC businesses.
BharatPe's background and achievements
Established in 2018, BharatPe has a network of over 1.3 crore merchants across 450+ cities and processes payments with an annualized transaction processed value (TPV) of over Rs. 1.7 lakh crore. The company has raised more than $583 million in equity, with prominent investors such as Peak XV Partners, Ribbit Capital, Insight Partners, and Tiger Global. In January 2023, the Reserve Bank of India (RBI) granted BharatPe Group an in-principle approval to operate as an online payment aggregator.
