Indian fintech startup BharatPe raises $75m led by Coatue, Ribbit Capital

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Fintech startup BharatPe has raised $75 million in fresh funding led by New York-based hedge fund Coatue Management and Palo Alto-based fintech investor Ribbit Capital, as it looks to gain a strong foothold in the lending space.

New investor Amplo, a US-based venture capital firm, and existing investors Insight Partners and Steadview Capital also participated in the Series C financing.

This brings the total capital raised by the one-and-a-half year-old startup to $143 million till date. BharatPe has seen its valuation double to almost $425 million in the current round, The Economic Times reported.

According to the company’s regulatory filings sourced by business signals platform paper.vc, its board has approved to allot 6,917 Series C1 shares and one equity share at a price of Rs 7,73,430 per share to five investors. Ribbit Cayman IN Holdings V and Coatue PE Asia have invested Rs 178.33 crore each while Amplo Opportunities has invested about Rs 89.17 crore in the round. Grace Software Holdings and Steadview have infused Rs 60.6 crore and Rs 28.5 crore, respectively.

Post the investment, Grace Software Holdings and Ribbit capital will own 11.01% and 11.42% stake, respectively in BharatPe on a fully diluted basis. New backers Coatue PE and Amplo Opportunities will hold 5.88% and 2.94% respectively.

BharatPe will largely use funding to facilitate working capital for its merchant partners. In the next two years, the company will aim to lend to around 300,000 merchants, or around 10% of its current merchant base, The Economic Times report said.

The development comes almost six months after the QR-code based payments app closed a $50-million round led by Ribbit Capital and Steadview Capital. Sequoia Capital, Beenext Capital and Insight Partners had also participated in that round.

Started by Ashneer Grover and Shashvat Nakrani, former executives at grocery firm Grofers, in April 2018, Bharatpe started as an aggregator of digital payment option for small businesses. The startup also forayed into lending earlier last year. The company has started lending working capital in partnership with banks, and has also reportedly applied for a non-banking financial company (NBFC) licence to start lending from its own books.

BharatPe is reportedly processing over 1.2 million transactions daily, allowing its 2.5 million+ merchant base to accept transaction for free on UPI.

It had raised $15.5 million in Series A round of funding from Sequoia Capital, Beenext, and Insight Partners in April last year. The company had reportedly raised $2 million in seed funding from Sequoia Capital and Beenext in October 2018.

The company also made a couple of senior hires last year to strengthen operations, and battle growing competition in the digital payments market dominated by players like PhonePe, Paytm and Google Pay.

In July last year, BharatPe appointed Jitendra Gupta, the former PayU India managing director, to its board. The same month, it also named Pawan Pathak as its senior vice-president (product) and Abhishek Sharma as its vice-president (product). A month prior, BharatPe roped in Pratekk Agarwaal as its chief business officer to lead its push into lending.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.