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All you need to know about Bharat Pe – Business Video

After the demonetization, you have seen many payment wallet companies come and provide digital payment solutions through UPI and QR-code like Paytm, Phonepe, Google Pay. Every company has their own QR-code which create a problem in making payment for the customer as well as merchants. Sashvat Nakrani, Ashneer Grover, and Bhavik Koladiya started BharatPe in April 2018. Sashvat Nakrani, co-founder of BharatPe, analysis the problem of different QR-codes on every transaction. He was a graduate of IIT Delhi.
Ashneer Grover is the MD and the co-founder of BharatPe. He belongs from New Delhi, he was a graduate from IIT Delhi. He was previously appointed as the CFO of Grofers.

Bhavik Koladiya is also another co-founder of BharatPe. He was the Group Head of Product and Technology.

About – BharatPe
BharatPe is QR-code based payment app for businessmen and retailers. It comes under the top 5 Fintech startups of India. Its headquarter is in New Delhi, India. BharatPe app provides all one solution, you can scan any QR-code and transfer the money. It is a B2B and B2C model.
It is launched to solve the problem of merchants. Merchants faced the problem of different QR-code of every company. For every different QR-code have to install a different company’s app. The second problem is commission because there is no payment gateway that allowed less than 1.5% commission, through which they lose out the margins.
Through Bharatpe, they don’t have to pay any commission. At the end of the day, money was transferred to the merchant’s account without any commission charge.

How they intend to become profitable?
Ashneer Grover finds that merchants are happy to pay interest on loans rather than paying commissions and there is no one in the market who provides unsecured loans. If you see the MSME market is quite huge and there is no institution that provides loans without any collateral. To fill this gap they provide unsecured loans. If you target this sector, there are 65 mn MSMEs employing 80 mn people.

After 6 months of founded, they started giving unsecured loans to merchants. Just like your credit card company analysis your spending pattern, the BharatPe algorithm analysis your cash flow and spending pattern. According to that, they provide loans on an algorithm basis. Just because of this their repayment rate is 96% which is one of the best in the market.

Providing loans to merchants, earning from interest payments and low NPA makes their business profitable.

BharatPe Growth
Bharat pe announces that the company grows by 7X of its annual revenue, they stood at 110 cr in FY20 and now revenue is 700 cr in FY21.
According to news and reports, Bharat pe is in 4th place in the UPI portion after Google pay, Phone pe, and Paytm. In the POS category, it comes in 3rd place. It is the 19th startup under the Unicorns. It is categorized into 3 stages: Bharat pe Swipe, Bharat pe Loans, Bharat pe credit.

BharatPe Funding
The BharatPe has raised a total funding of $700 million till now. They raised the last funding from Debt Financing of $1 billion on 25 October 2021. The first funding was raised from BEENEXT and Sequoia Capital India of $2 million on 1 October 2018. There is a total of 23 investors in the company.

Stakeholder Pattern of BharatPe
Ashneer Grover With 9.5% Shares, Shashvat Nakrani with 7.8% Shares, Sequoia Capital India with 19.6% shares, Coatue with 12.4% shares, Ribbit Capital with 11% shares, Beenext with 9.6% shares, Steadview capital with 4.1% shares, Tiger Global with 3.7% shares and others with 22.3% shares.

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