The firm has about Rs45,000 crore in debt and last week announced that it was going to shut down its 2G services in about a month.
The firm said it will be utilizing the proceeds mainly to strengthen its financial services business.
As of 30 June 2017, Bharat Financial had a loan book of Rs 10,971 crore.
The development will further impede its efforts to pare its huge debt.
Merger discussions may even be called off if the deal structure is not favourable to shareholders of the Shriram group firms.
The company is set up under Piramal Finance with an initial capital of $152m.
The deal, valued at $40.7 million, is a slump sale.
All P2P loan platforms will be treated as NBFCs and will be brought under the ambit of RBI.
The micro lender, formerly SKS Microfinance, is in talks with two potential buyers, IndusInd Bank and RBL Bank.
This makes DBS the second foreign bank to operate through the WOS model in India after State Bank of Mauritius.