BharatPe In Talks To Raise $100 Million With Existing Investors In Fresh Equity Round: Report

Fintech startup BharatPe is reportedly in talks with its existing investors to raise up to $100 million in a fresh equity funding round. The Delhi-based company is also trying to onboard new investors in this round, sources were quoted as saying by The Economic Times.

BharatPe hit a valuation of $3 billion after it had raised a major equity round in 2021. However, the new round is being negotiated at a lower valuation, the sources further revealed.

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This also came after the top-level talent including — Nishant Jain, chief business officer, Prashant Gagneja, vice president of organised trade (mid-sized retailers), Ashish Aggarwal, vice president in charge of user growth, Anurag Rathor, vice president of products, and Rahul Chauhan, who was head of product design at the company — have all moved on, another source was quoted as saying by ET.

“There have been talks for new capital at BharatPe, but the contours are not finalised yet and valuation will be tricky because of its troubles as well as the broader correction in valuation,” sources said, adding that it is still a couple of months away, at least.

Company spokesperson told ET that the fintech company is focusing on achieving profitability and getting ready for an IPO. “Our business is scaling well across business lines, and we are witnessing growth on all important business metrics,” the person said.

The company is likely to settle for around $2 billion valuation, which will be a good point to start fresh, it added.

BharatPe had set a target to achieve Ebitda-level profitability by March 2023 and score a turnaround in the business with stronger revenue flows and an eventual public listing in the next two years. Showcasing these plans, BharatPe is hoping to raise fresh money and scale up its business operations.

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"There has been a recovery in metrics after the clean up at the firm across businesses and the management. The firm has set an internal target to hit operating profitability by October," sources said.

BharatPe had raised around $370 million at a valuation of $2.9 billion in 2021 with Tiger Global Management coming into the company.