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.