Fintech player BharatPe has seen a significant increase in its operations following the restrictions imposed by the Reserve Bank of India (RBI) on competitor Paytm’s payments bank arm on January 31, 2024.
In February 2024, BharatPe reported a 77 percent surge in merchant onboarding compared to the previous month, the Hindu Businessline reported. Additionally, the platform’s website traffic for onboarding inquiries rose by over 47 percent, BharatPe told the paper.
The increase in onboarding was particularly notable in Tier-I cities, which saw a rise of 76 percent, followed by a 63 percent growth in Tier-II cities, it added. Furthermore, Tier-III cities and beyond experienced an impressive growth rate of over 83 percent, leading to the total merchant base surpassing 13 million by the end of February, as per the report.
The majority shift happened in the first 15 days post the central bank’s restrictions on Paytm Payments Bank, it added.
Shift in Kirana Stores
A substantial shift was observed in Kirana stores, with over 42 percent reported to have migrated to alternative platforms like Mobikwik, BharatPe, PhonePe, and GooglePay, as per the report.
This transition was attributed to the uncertainty surrounding Paytm, prompting cautious merchants to ensure uninterrupted UPI payments. Previously, Paytm held approximately 69 percent market share among Kirana stores.
During the first half of February, BharatPe witnessed a 100 percent increase in merchant sign-ups compared to the previous month. This growth was particularly pronounced in metro cities, recording a 104 percent increase, and Tier-2 and 3 cities saw a 95 percent surge.
Additional features and offers, including free QR code setup, flat earnings of up to ₹300, and instant settlements, contributed to this uptick.
Financial Performance
BharatPe’s financial performance showed signs of improvement, with its loss narrowing to ₹886 crore in FY23 from ₹5,594 crore in FY22. The EBITDA loss also decreased by ₹158 crore in FY23, as disclosed by the fintech company.
Notably, its merchant lending business experienced a remarkable growth of 129 per cent, reaching ₹5,339 crore, with total loan disbursements amounting to approximately ₹12,400 crore to date.
Since its inception, BharatPe has secured over $583 million in equity from various investors, including Peak XV Partners, Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management, Dragoneer Investment Group, Steadfast Capital, Steadview Capital, and Tiger Global.
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Published: 26 Mar 2024, 09:41 AM IST