BharatPe, a financial technology firm that has launched its banking platform, has secured $370 million in a fundraising round managed by New York-based Tiger Global, valuing the business at $2.85 billion.
The money would let BharatPe, which was established three years ago, unite with Centrum Financial Services to establish a small financing bank, which will take over insolvent lenders Punjab and Maharashtra Cooperative Bank (PMC Bank).
The latest financing round at BharatPe was managed by New York-based Tiger Global, which has been highly engaged in the Indian business, with involvement from two new investors, Dragoneer Investment Group and Steadfast Capital.
Current BharatPe investors Coatue Management, Insight Partners, Sequoia Growth, Ribbit Capital, and Amplo are among the new investors. In addition, the firm announced that it had completed a $20 million secondary share sale as part of an employee stock repurchase programme.
As numerous high-profile global investors double down on the South Asian market, it is the nineteenth Indian firm to become a unicorn this year (up from 11 last year).
Tiger Global led the latest round, which valued the New Delhi-based firm at $2.85 billion (post-money), according to a statement released Tuesday evening. The latest round also included Dragoneer Investor Group and Steadfast Capital, bringing the startup’s total equity funding to nearly $580 million.
Founded four years ago, the business had a pre-money worth of $2.5 billion and was seeking $250 million in investment. As of February of this year, BharatPe was valued at $900 million, up from $425 million in its Series D funding.
Online retailers may use BharatPe’s service to accept digital payments while also secure working investment. Coatue, Ribbit Capital, and Sequoia Capital India are among its existing investors.
More than 650 million Internet users in India have already made their way online, yet much of the country remains offline.
Merchants running smaller enterprises, such as roadside tea vendors and local stores, are among those shielded from the internet’s reach. Using QR codes and point of sale equipment that support the UPI payments infrastructure, BharatPe makes it easy for businesses to accept digital payments from consumers.
Over 130 Indian cities are served by the firm, which has released close to $300 million in payments to merchant partners. However, it is aiming to generate money by lending money instead of charging retailers for the global QR code access.
India’s national bank, the Reserve Bank of India, recently awarded BharatPe a licence to establish a small financing bank alongside Centrum Financial Services. A licence was obtained through a collaboration between Centrum Financial Services and BharatPe.
Indian digital startups have seen a boom in investment this year as investors bet on companies that are more likely to thrive in the post-pandemic environment, with Swiggy, a food delivery service, and Walmart Inc-owned Flipkart both raising cash in July. BharatPe is one of them, taking the market by storm and increasing the probability of profit for their consumers and their brand value.
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