BharatPe Success Story – A Remarkable Success Story in India’s Fintech Landscape

Imagine a world where loans are easily accessible without the hassle of traditional banks, where investments are made simple and affordable, and where small business owners and merchants can accept digital payments with ease. 

This world is depicted in the tale of BharatPe, a fintech phenomenon that is revolutionising Indian business practices. BharatPe is revolutionising the financial services industry by offering creative solutions such as BharatSwipe, gold loans for merchant partners, and a distinctive investment platform, thereby increasing accessibility and convenience for all. 

Come along for a ride through the innovation and Bharatpe success story like how Bharatpe stand out in India’s best fintech scene.

The History and Start of BharatPe

Ashneer Grover and Shashvat Nakrani, two entrepreneurs with a goal of empowering small businesses in India, founded BharatPe in 2018.

The company was established in order to help these businesses with their financial difficulties, especially with regard to accepting digital payments. 

For small business owners and merchants, the conventional banking system and payment processors were frequently unreachable, costly, and inconvenient.

BharatPe’s creative approach to digital payments is the key to its success. The founders realised that a seamless, affordable solution catered to the specific requirements of Indian merchants was necessary if India was to go fully digital.

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BharatPe’s Business Model

The core of BharatPe’s business strategy is to make digital payments simple and give small businesses quick access to financial services. This is how the business operates:

1. QR Code-Based Payments:

Businesses can accept payments by using the QR codes that BharatPe provides. Both customers and merchants will find it convenient and familiar as they can use their preferred payment app, such as Google Pay, PhonePe, or Paytm, to scan these QR codes.

2. No Additional Fees:

BharatPe does not impose any fees on merchants for accepting digital payments, in contrast to traditional payment processors. By encouraging small businesses to adopt digital transactions, this free service promotes greater financial inclusion.

3. Quick Settlement:

BharatPe makes sure that payments that merchants receive are immediately deposited into their bank accounts, removing the need for them to wait several days to access their money.

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12% Club of BharatPe Success Story:

BharatPe has launched the ground-breaking 12% Club, an investment, lending, and borrowing app, in association with NBFCs that have received RBI approval. 

BharatPe is making a big step forward by entering the consumer market and offering its clients the following amazing advantages:

1. Earn Up to 12% Interest: Without requiring a long-term commitment, investors can use the 12% Club to invest their money and earn up to 12% annual interest. Since there is no lock-in period, you can still access your money.

Want to borrow money at 12% interest? The 12% Club provides 12% interest rates that are competitive. For a maximum of three months, you can borrow up to Rs. 10 lakhs without having to provide any collateral.

2. Flexible Withdrawals: You are able to take out as much or as little of your money as you like, whenever you choose.

3. No Extra Charges: The 12% Club app ensures no processing or pre-payment charges for loans, making it a cost-effective option for borrowers.

4. Low Investment Start: Get started with investments for as little as Rs 1000 and enjoy the convenience of daily interest credits.

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BharatPe – Funding And Investors

Rising star in India’s fintech industry BharatPe has had an incredible journey of development and expansion. Through a number of funding rounds, it has successfully raised a total of $720 million, solidifying its position as one of India’s leading fintech startups. The main funding rounds and the lead investors are broken down here:

Debt Financing – October 25, 2021:

• Money Raised: $13.32 million
• Lead Investor: MAS Financial Services Private Limited
• Purpose: To strengthen the merchant lending vertical.

Debt Financing – August 19, 2021:

• Money Raised: $13.44 million

• Lead Investors: Northern Arc and IIFL Wealth

Series E – August 4, 2021:

• Money Raised: $370 million
• Lead Investors: Tiger Global Management LLC, Coatue Management, and Ribbit Capital

Secondary Market – August 4, 2021:

• Money Raised: $20 million
• Debt Financing – May 10, 2021:
• Money Raised: $6.7 million
• Lead Investor: Northern Arc

Series D – February 11, 2021:

• Money Raised: $108 million
• Lead Investor: Coatue Management

Debt Financing – January 6, 2021:

• Money Raised: $33.5 million
• Lead Investors: Alteria Capital, Innoven Capital, and Trifecta Capital

Series C – February 24, 2020:

• Money Raised: $75 million
• Lead Investors: Coatue and Ribbit Capital

Series B – June 4, 2019:

• Money Raised: $50 million
• Lead Investors: Insight Partners and Ribbit Capital

Series A – February 21, 2019:

• Money Raised: $14.5 million
• Lead Investor: Sequoia Capital India

Seed Round – October 1, 2018:

• Money Raised: $2 million

• Lead Investors: BEENEXT and Sequoia Capital India

With the help of these large investments, BharatPe has been able to grow its business, create new goods and services, and rank among the most valuable fintech startups in India. 

Diverse investors’ financial support is indicative of their belief in BharatPe’s mission and potential in the Indian fintech space.

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The Success Factors of BharatPe

Several factors have contributed to BharatPe’s rapid rise in the Indian fintech industry:

• Digital Payments Push: The Indian government’s push for digital payments and the introduction of the Unified Payments Interface (UPI) have created a favorable environment for fintech companies like BharatPe. 
• Unique Business Model: BharatPe’s unique model of offering free QR code-based payments has been a game-changer.  Merchants can embrace digital transactions without incurring extra costs, making it highly attractive to small businesses.
• User-Friendly App: The BharatPe app is designed to be user-friendly and easy to use. This has made it accessible even to those who may not be tech-savvy.
• Lending Services: BharatPe’s foray into lending has provided small businesses with access to much-needed capital. The company uses transaction data to assess creditworthiness, making it easier for small businesses to secure loans.
• Expanding Network: BharatPe has rapidly expanded its network of merchants and partnered with various payment apps and banks. This extensive network has amplified its reach and influence.
• Innovative Marketing: The company has effectively used influencer marketing and innovative ad campaigns to create brand awareness and establish trust among its target audience.
• Strong Leadership: The founders, Ashneer Grover and Shashvat Nakrani, have been dynamic and visionary leaders, guiding the company through challenges and driving its growth.

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Products and Features of BharatPe

1. BharatSwipe:

BharatSwipe, a cutting-edge, free-rent card payment acceptor, was unveiled by BharatPe in 2020. This signaled a substantial change in the Indian market. The BharatSwipe network expanded 25 times in less than a year, reaching over 250 cities and putting over 125,000 machines in offline stores.

2. Gold Loans for Merchant Partners:

BharatPe began offering secured gold loans to its merchant partners on March 14, 2022. With these loans, merchants can obtain loans up to Rs. 20 lakhs at a competitive rate of 0.39%. These loans are provided in partnership with NBFCs approved by the RBI. 

Beginning in Delhi NCR, Bangalore, and Hyderabad, the service will eventually be available in 20 cities by the end of 2022. By the same year, BharatPe hopes to have disbursed loans totaling Rs. 500 crores in gold.

3. Digital Loan Application:

The BharatPe app is used by merchants to view loan offers, and the entire loan application process is digital. 30 minutes after completing BharatPe’s assessment process, loans are disbursed. 

In collaboration with NBFCs, the business also provides doorstep service and branch collection. Businesses can select loan terms of six, nine, or twelve months, with Easy Daily Installments (EDI) required for repayment. We also have an EMI option scheduled for the near future.

4. Investment Platform:

In May 2022, BharatPe introduced an investment platform for its merchant partners. It will offer P2P investments and bank deposit products, providing opportunities for merchants to grow their funds.

5. Payback Rebranded as Zillion:

Payback, a loyalty program, was rebranded as Zillion in May 2023. Zillion offers customers a range of options to earn and redeem rewards at various partner establishments across the country.

6. Android POS Machine:

On August 11, 2023, BharatPe launched the BharatPeSwipe Android point-of-sale (PoS) terminal. 

This device accepts various digital payment methods, including debit/credit cards, UPI, mobile wallets, and QR codes, making transactions more convenient for merchants.

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Challenges and Competition

The road to success for BharatPe has not been without its share of difficulties. The fintech sector is fiercely competitive, with both long-standing firms and recent arrivals fighting for market share. 

Data security and regulatory compliance are ongoing concerns that the business must manage to preserve its growth and reputation.

Moreover, even though BharatPe’s business model is distinct, others may still copy it. A number of rivals have entered the market and are providing merchants with comparable services; therefore, in order to maintain its lead, BharatPe must constantly innovate and deliver exceptional customer care.

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BharatPe vs its Competitors

1. BharatPe vs. PhonePe:

• BharatPe offers a unique QR code-based payment solution for merchants, while PhonePe is primarily a consumer-focused payment app.
• BharatPe’s zero-rental BharatSwipe machine has empowered small businesses, whereas PhonePe focuses on digital wallet services.
• BharatPe’s expansion into gold loans and investment platforms sets it apart from PhonePe’s core offerings.

2. BharatPe vs. Paytm:

• BharatPe is committed to streamlining digital payments for small enterprises, whereas Paytm serves a wider range of users.
• Paytm is well-known for its wide range of services, which include bill payments, e-commerce, and mobile recharges, while BharatPe provides free QR code payments and creative lending options.
• Paytm’s financial offerings are not the same as BharatPe’s 12% Club, which provides exclusive investment and lending opportunities.

3. BharatPe vs. Google Pay:

• Google Pay is a payment app that is more focused on the user, while BharatPe offers lending options and QR code-based payments to merchants.
• For merchant partners, BharatPe provides gold loans and investment opportunities, while Google Pay mainly caters to the payment needs of individual users.
• BharatPe differs from Google Pay in that it offers tailored merchant solutions.

4. BharatPe vs. Razorpay:

• Razorpay is a payment gateway solution, while BharatPe is well-known for its zero-rental BharatSwipe machine and free QR code-based payments designed for small businesses.
• With its diversification into gold loans and merchant investment platforms, BharatPe now provides a greater array of financial services than Razorpay.
• In contrast to BharatPe’s merchant-centered strategy, Razorpay primarily provides online payment solutions to businesses and enterprises.

5. BharatPe vs. MobiKwik:

• BharatPe is concentrated on making it easy for small businesses to take digital payments, whereas MobiKwik is more consumer-focused, providing digital services and a mobile wallet.
• What sets BharatPe apart from MobiKwik’s offerings are its zero-rental BharatSwipe machine and creative lending solutions designed with merchants in mind.
• In contrast to BharatPe’s tailored approach for businesses, MobiKwik offers a wider range of services, such as online shopping, bill payments, and mobile recharges.

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BharatPe’s Road Ahead

The success story of BharatPe is far from over. The business is actively looking into ways to grow and diversify even more. In the future, BharatPe is expected to concentrate on the following important areas:

• Growing Beyond Payments: BharatPe started off as a payment solution based on QR codes, but it has progressively expanded to include more services. In order to meet the needs of a wider range of merchants, the company is anticipated to broaden the scope of its financial product and service offerings.
• Geographical Expansion: In order to reach markets abroad with comparable small business environments, BharatPe may consider extending its services outside of India.
• Technology Integration: In order to provide its clients with more individualized and effective financial solutions, the company is probably going to keep utilizing data and technology.
• Robust Partnerships: BharatPe’s ecosystem can be strengthened and its users can benefit more from partnerships with banks, fintech firms, and e-commerce platforms.
• Regulatory Compliance: BharatPe must keep ahead of the curve as fintech regulations change in order to guarantee that its operations continue to be safe and compliant.

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Wrapping Up:

The success of BharatPe is evidence of the value of creativity, tenacity, and a thorough comprehension of the particular difficulties faced by Indian small enterprises. 

The company’s history, from its founding to its current status as a frontrunner in the Indian fintech sector, shows how digital solutions can promote financial inclusion and change.

BharatPe is positioned to have an even bigger impact on the development of India’s digital economy and the empowerment of small businesses all around the country as it develops and broadens its offerings. 

In a world where financial technology is revolutionizing the way we transact and obtain financial services, BharatPe is a shining example of a success story that never stops setting the standard and inspiring others.

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