Fintech firm BharatPe expects its revenue to grow about 30 per cent in FY25, a year when it also aims to turn full-year EBITDA positive, as it eyes an IPO in 18-24 months, according to CEO Nalin Negi. BharatPe is also paring its stake in Unity Small Finance Bank, and has roped in Rothschild to scout for potential buyers.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Negi told PTI in an interview that BharatPe is open to small acquisitions, and companies that "add value to a particular process" will fit the bill.

"There are lot of fintechs that started, some are doing well, some are not... Some definitely have an edge but not the right funding or resources, we are looking at them as well," Negi said.

The company is looking at a 18-24 months timeframe for the IPO, depending on market conditions.
"We are there, we are talking to people...Have we appointed anyone? No, not yet, but we are having conversations, even at management levels and internal discussions...It is the way to go for us," he said.

On whether the company has started working on pre-IPO checklist on governance, compliance and financial metrics, he said the financials are streamlined, and the company is fully focused on the control and governance aspects.

"We feel, yes, we are checking the boxes when it comes to processes, delivery of consistent numbers...We have done a lot of investment on our systems and processes in last 1-1.5 years...There is still some work to be done," he said.

Terming FY24 a "watershed" year for BharatPe on financials, Negi said the company achieved Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) profitability for the first time in October 2023.

"We are looking at a full-year EBITDA profitability in 2024-25, and that is what is going to happen for BharatPe," he said exuding confidence on the company's path to profitability.

The fintech startup has been sharply focused on the "building blocks for future" through sustained efforts, including launch of all-in-one devices, revamp of royalty rewards, consumer app, among others.

"I am hoping that in January, we will launch a co-branded credit card and before the end of financial year, we will also launch a credit line product, so while we are focused on growth and getting the profitability, we are also ensuring that new products and building blocks are in place, to help us grow in future," he said.

The growth rate of FY25 will be close to about 30 per cent (lower than FY24) while FY26 growth will be higher.

"This year, there we certain changes in regulations and we were also looking to build certain things, so we held back - judiciously - on some aspects...On some growth...Now in January we are going back into the full growth mode...We will look at somewhere around 30 per cent growth in FY25, and we will be happy to beat that number," Negi said.

For FY24, BharatPe Group reported consistent growth across various business lines. The group's consolidated EBITDA loss before share-based payment expense reduced drastically by 75 per cent on a year-on-year basis to Rs 209 crore.

The consolidated revenue from operations grew by 39 per cent year-on-year to Rs 1,426 crore, and consolidated loss before tax reduced by 50 per cent YoY, from Rs 941 crore to Rs 474 crore. BharatPe saw its consolidated cash burn reduce by 85 per cent annually.