BharatPe

BharatPe

Type of business	Private
Type of site	Financial service
Available in	Multilingual
Founded	2018;6 years ago (2018)
Headquarters	New Delhi, India
Area served	India
Founder(s)	Ashneer Grover Shashvat Nakrani Bhavik Koladiya
Chairman	Rajnish Kumar
Key people	Nalin Negi (CFO) Ankur Jain (CPO) Aparna Kuppuswamy (CRO) Pankaj Goel (CTO) Parth Joshi (CMO)
Industry	Internet E-commerce
Services	UPI payments and digital money lending for merchants
Revenue	₹1,029 crore (US$120 million) (FY23) [1]
Net income	₹−941 crore (US$−110 million) (FY23)
Parent	Resilient Innovations Private Limited
URL	bharatpe.com
Commercial	Yes
Registration	Required
Current status	Active

BharatPe is an Indian fintech company that sells digital payment and financial services to small merchants and Grocery stores. ^{[2] [3] [4] [5]}

History

According to Peerzada Abrar of Business Standard , "BharatPe was founded in 2018 by Bhavik Koladiya and Shashvat Nakrani, with the vision of making financial inclusion a reality for Indian merchants." ^[6]

In 2021, the company acquired Payback India, a "multi-brand loyalty programme". ^{[7] [8]}

In April 2024, BharatPe elevated Nalin Negi as its CEO, 15 months after he took over as the interim CEO and CFO in January 2023. ^[9]

On 20 August 2024, BharatPe announced extending its credit offerings for its merchants to secured loans. The company will now enable secured two-wheeler loans and Loans Against Mutual Funds (LAMF) through lending partners OTO Capital for two-wheeler loans and Volt Money for LAMF. ^{[10] [11]}

BharatPe Saga

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After months of intense legal battles in both Indian courts and international arbitration^{[ unreliable source? ]}, Ashneer Grover, the controversial^{[ unreliable source? ]} former managing director of BharatPe, has reached a settlement with the company in a high-profile^{[ unreliable source? ]} legal case involving allegations of financial misconduct and shareholder disputes^{[ unreliable source? ]}. As part of the settlement, Grover will also return shares (close to 2.6% stake) to BharatPe co-founder Bhavik Koladiya^{[ unreliable source? ]}, resolving the share ownership dispute that has been ongoing since Koladiya filed a lawsuit seeking to reclaim shares originally transferred in December 2018, the source added^{[ unreliable source? ]}. In addition, Grover has agreed to surrender 1.4% of his stake to the BharatPe board^{[ unreliable source? ]}. His which is a little above 4% stake will be transferred to a Family Trust” – which means Grover will no longer appear on the company’s cap table^{[ unreliable source? ]}, the source claimed^{[ unreliable source? ]}. The legal battle between Grover and BharatPe dates back to early 2022^{[ unreliable source? ]}, when Grover was accused of financial irregularities, including the misappropriation of funds and recruitment fraud^{[ unreliable source? ]}. BharatPe initiated arbitration in Singapore^{[ unreliable source? ]} to recover Grover's unvested shares and prevent him from using the title of "founder."^{[ unreliable source? ]} This was followed by multiple lawsuits^{[ unreliable source? ]}, including civil and criminal complaints alleging fraud amounting to Rs 81.28 crore^{[ unreliable source? ]}. All involved parties are now expected to file for the withdrawal of lawsuits against Grover in Delhi courts^{[ unreliable source? ]}. The Backstory: Grover’s Rise and FallBharatPe was co-founded by Bhavik Koladiya and Shashvat Nakrani in 2017, with Grover joining as a third co-founder in 2018^{[ unreliable source? ]}. BharatPe quickly became a fintech powerhouse^{[ unreliable source? ]}, and in 2021, it secured in-principle approval from the Reserve Bank of India to acquire a banking license^{[ unreliable source? ]}, making it the first fintech in India to do so^{[ unreliable source? ]}. By August 2021, the company’s valuation skyrocketed to $2.8 billion after a $370 million funding round led by Tiger Global^{[ unreliable source? ]}. Grover, by then, had become the public face of BharatPe and a well-known TV personality. However, his success was short-lived^{[ unreliable source? ]}. In early 2022, an audio clip leaked where Grover was allegedly heard abusing a Kotak Wealth Management employee over a missed investment opportunity in the Nykaa IPO^{[ unreliable source? ]}. While Grover denied the authenticity of the clip^{[ unreliable source? ]}, claiming extortion, insiders confirmed that the conversation had indeed taken place^{[ unreliable source? ]}. Soon after, BharatPe’s board initiated an investigation^{[ unreliable source? ]}, which revealed multiple discrepancies, including inflated vendor invoices and irregular recruitment practices^{[ unreliable source? ]}. On January 19, 2022, Grover took a "voluntary" leave^{[ unreliable source? ]}, followed by the termination of several employees^{[ unreliable source? ]}, including Grover’s wife, Madhuri Jain, who was head of controls at BharatPe^{[ unreliable source? ]}. By the end of January, the board had decided to remove Grover based on a preliminary report by Alvarez & Marsal, which uncovered instances of fraud^{[ unreliable source? ]}. The Legal BattleIn December 2022^{[ unreliable source? ]}, BharatPe filed several legal actions against Grover and his family, including a civil suit seeking Rs 88.67 crore in damages; and a criminal complaint with the Economic Offence Wing (EOW) alleging fraud, forgery, and conspiracy^{[ unreliable source? ]}. The company also approached the Singapore International Arbitration Centre (SIAC) to reclaim Grover’s restricted shares, which constituted approximately 1.4% of his stake^{[ unreliable source? ]}. The arbitration aimed to enforce the company’s rights under the shareholder agreement, which Grover had allegedly breached^{[ unreliable source? ]}. As per the company’s captable, Grover held about 8.5% stake in the fintech unicorn^{[ unreliable source? ]}. In January 2023, Koladiya sued Grover in the Delhi High Court, seeking to regain shares he had transferred to Grover back in 2018.^{[ unreliable source? ]} [A Little Backstory: When Grover joined BharatPe, the shareholding structure was as follows: Grover held 32% equity, Nakrani had 25.5%, and Koladiya remained the largest shareholder in the company with a 42.5% stake, according to Registrar of Companies filings^{[ unreliable source? ]}. However, six months later, in December 2018, just before Sequoia came on board as an investor, Koladiya’s name disappeared from the founders' list due to concerns from large institutional investors about having a person with a jail term in the US.^{[ unreliable source? ]} (Koladiya had been jailed for mail fraud and identity theft in the US.^{[ unreliable source? ]}) The founders and other stakeholders reached an understanding to minimize Koladiya’s public involvement with the firm^{[ unreliable source? ]}. This arrangementinvolved him transferring his stake to Grover, Nakrani, Nakrani’s father (who was also his former schoolteacher), and some angel investors^{[ unreliable source? ]}. After the Sequoia round, Grover and Nakrani owned 29.1% and 23.3% of the company, respectively^{[ unreliable source? ]}. From that point on, Grover became the public face of BharatPe, while Koladiya continued to be the tech backbone of the company, albeit as a consultant.]^{[ unreliable source? ]} The Settlement Fast forward to September 2024, and the conflict seems to have reached its conclusion^{[ unreliable source? ]}. Recently, Delhi’s Economic Offences Wing (EOW) – which registered an FIR against Grover and his family in May last year – arrested Deepak Gupta, a family member and former Head of Procurement at BharatPe’s parent company, over alleged misappropriation of company funds^{[ unreliable source? ]}. This arrest reportedly prompted Grover to push for a settlement^{[ unreliable source? ]}. The settlement, if true, marks a major turning point in this legal saga^{[ unreliable source? ]}. As part of the agreement, Grover has returned the shares originally transferred by Koladiya^{[ unreliable source? ]}. This resolves the dispute over ownership, which had become a central point of contention between the two founders^{[ unreliable source? ]}.While the exact terms of the financial settlement remain confidential, sources close to the matter have confirmed that the deal involves a return of shares, along with a resolution of other outstanding disputes^{[ unreliable source? ]}. Sources also indicate that Grover and his family are planning to leave India following this settlement^{[ unreliable source? ]}.

• Shareholding Before Settlement:^{[ unreliable source? ]}
  • Ashneer Grover held an 8.4% stake.
  • Other major shareholders included:
    • Peak XV (Sequoia): 18.7%
    • Ribbit Capital: 10.7%
    • Cotue: 13.7%
    • Beenext: 9.1%
    • Shashvat Nakrani: 4.8%
    • Bhavik Koladiya: 2.3%
    • Amplo: 3.3%
    • Steadview: 3.9%
  • The rest of the shareholders accounted for 21.7%.
• Shareholding After Settlement (Estimates):
  • Bhavik Koladiya:
    • Previously owned 2.3%.
    • After the settlement, he will own approximately 4.9%.
    • His net worth is now estimated at $139 million (₹1158 crore).
  • Shashvat Nakrani:
    • Holds 4.8% of BharatPe.
    • His net worth is estimated to be $136 million (₹1133 crore).
  • Ashneer Grover:
    • Surrenders 1.4% of his stake as a penalty to BharatPe.
    • Transfers 2.6% of his stake to Bhavik Koladiya.
    • Left with a little over 4% of the stake.
    • His net worth is estimated at $116 million (₹966 crore).

Investments

BharatPe has a stake in Unity Small Finance Bank. ^[12]

Subsidiaries

• Loyalty Solutions & Research Private Limited
• Resilient Payments Private Limited ^[13]
• Resilient Digi Services Private Limited (formerly Resilient TechServ Pvt Ltd)
• Resilient Capital Private Limited
• Trillionloans Fintech Private Limited

PostPe

In October 2021 BharatPe launched the country's first BNPL (Buy Now Pay Later) product. ^[5]

References

1. "BharatPe's revenue crosses Rs 1,000 Cr in FY23". Entrackr. Retrieved 26 January 2023.
2. "BharatPe acquires loyalty platform PAYBACK, aims to expand merchant base to 20 million by 2023". www.cnbctv18.com. 10 June 2021.
3. Bureau, BL Bengaluru (19 January 2024). "BharatPe marks close of $100 m debt round". BusinessLine. Retrieved 10 March 2024.{{cite web}}: |last= has generic name (help)
4. Dey, Asmita (17 February 2024). "BharatPe, MobiKwik see surge in new merchants". The Times of India. Retrieved 10 March 2024.
5. Das, Basudha (28 November 2023). "BharatPe turns profitable 5 years after launch, reports annualised revenue of Rs 1,500 crore". Business Today. Retrieved 10 March 2024.
6. Arti, Singh (2024). "BharatPe". Business Standard India.
7. "Valued at $2.85 billion, Bharat Pe raises fresh $370 million in funding led by Tiger Global". The Financial Express. 5 August 2021.
8. Ranjan, Abhinav (10 June 2021). "BharatPe acquires loyalty platform Payback India". www.indiatvnews.com.
9. "BharatPe elevates Nalin Negi as CEO". Mint. 16 April 2024. Retrieved 16 April 2024.
10. "BharatPe to now offer collateral-free loans to merchants; partners with OTO Capital, Volt Money". Financialexpress. 20 August 2024. Retrieved 21 August 2024.
11. "BharatPe launches secured loans for merchants, expands credit offerings".
12. "BharatPe nominates Partha Pratim Sengupta to Unity Small Finance Bank board". cnbctv18.com. 19 June 2023. Retrieved 14 August 2023.
13. "BharatPe gets payment aggregator licence from RBI". The New Indian Express. 11 January 2023. Retrieved 4 June 2024.

External links

• Official website