Delhi-based, Fintech start-up BharatPe has raised $370 million by its New York-based new investor Tiger Global Management with other participants Steadfast Capital, Dragoneer Investor Group, Sequoia Capital, Coatue Management, Insight Partners, Amplo, and Ribbit Capital in its Series E round.
The round takes BharatPe to a total valuation of $2.85 billion and makes its entry in the list of Indian Unicorn and becomes 19th Unicorn company of 2021. In this list, the last entry was OfBusiness (a B2B e-Commerce company) in July.
This is a three-fold bounce in the company’s valuation within six months. It was valued at around $922 million during its last fundraise in February.
Tiger Global infuse $100 million in the start-up, with Steadfast and Dragoneer invested $25 million each, as their contribution, existing investors Insight Partners, Sequoia Capital, Amplo, Coatue Management, and Ribbit Capital have invested a combined of $200 million in the company as a part of its current Series E fundraise.
The company aims to raise a further $700 million in debt capital over the next two years to facilitate this credit growth and plans to scale its overall financing to $3 billion by March 2023 with an outstanding loan book of $1 billion.
BharatPe’s key business verticals include its merchant payments business, financing, and financial services offerings to merchant partners. It has disbursed close to $300 million in financing to merchant partners to date and has an outstanding loan book of $100 million.
About $10 billion in annual payment value is being processed on the BharatPe platform, and the company looks to elevate this to $30 billion by 2023.
BharatPe co-founder Ashneer Grover confirmed that the start-up was indeed looking to raise $250 million until inbound requests from investors prompted an oversubscription. The new investment also includes some secondary transactions.
“Our initial plan was to raise $250 million. However, the round was heavily oversubscribed. We believe that the $350 million immediate raise will give us enough runway for the next three years, after which we may look at the listing in the public markets. We still have cash in the bank from our Series C and D rounds and an overall liquidity runway of $500 million, which will keep us in good stead for future growth,” said Grover in interaction with Mint on Tuesday. The current fundraising will be utilized to grow its existing lines of business 10-fold in the next two years, according to Grover.
Since its inception in 2018, the company has a presence in close to 140 cities and plans to increase its reach to 300 towns over the next two years. It also plans to take its deployment of point-of-sale devices from 100,000 at present to 400,000 over the next two fiscal years.
BharatPe also recently acquired PAYBACK India, a multi-brand loyalty platform, and helped its 7 million offline merchants roll out rewards and loyalty programmes for customers. This marked BharatPe’s entry into the consumer-facing segment, as it looks to launch ‘Buy Now Pay Later’ services on the PAYBACK platform.