BharatPe Establishes Separate Lending Entity Amid Strategic Restructuring

BharatPe Establishes Separate Lending Entity Amid Strategic Restructuring

BharatPe, backed by Peak XV Partners, is set to create a distinct lending service provider (LSP) arm, separating it from the core operations by forming a wholly owned subsidiary. Reports suggest that this initiative aims to enhance the focus on lending services within the company.

The Birth of BharatPe Money

The new entity, BharatPe Money, will function as a dedicated lending division catering to both merchants and consumers. Sources indicate that it will encompass BharatPe's consumer-facing service, Postpe, and BharatPe Easy Loans.

While BharatPe refrained from commenting on these developments, a subsidiary named Resilient Digi Services Private Limited has been incorporated to house the lending vertical. Notably, key leadership figures from BharatPe will steer this new entity.

Key Leadership and Reorganization

The subsidiary's directorship includes notable names such as Nalin Negi, BharatPe's CFO and interim CEO, and Rijish Raghavan, the CEO of Zillion under BharatPe Group. Kohinoor Biswas, overseeing BharatPe's consumer lending business, is set to lead alongside Raghavan.

Reportedly, Negi might depart from Resilient Digi Services as part of the company's internal corporate governance strengthening efforts.

Strategic Moves and Regulatory Progress

Amid the company's recent leadership changes and internal restructuring, BharatPe is striving to enhance its business operations. Additionally, reports suggest that the company is poised to obtain regulatory approval for a payment aggregator and payment gateway license from the Reserve Bank of India (RBI).

Business Milestones and Future Endeavors

BharatPe announced significant achievements, stating positive EBITDA in October and a 31% year-on-year increase, surpassing INR 1,500 Cr in annualized revenue for FY24. Eyeing a public listing in 2025, the fintech unicorn is reportedly exploring a fresh funding round worth $100 million.

With a diversified business approach and aspirations for expansion, BharatPe's strategic reorganization signals a focused push toward bolstering its lending vertical while navigating various regulatory milestones and enhancing its financial standing.

Key Highlights of the news

• BharatPe is establishing a new entity named BharatPe Money to handle its lending activities.

• BharatPe Money will encompass both merchant and consumer lending businesses, including Postpe and BharatPe Easy Loans.

• Kohinoor Biswas, head of BharatPe's consumer lending business, and Rijish Raghavan will lead the new entity as directors.

• The move aligns with BharatPe's focus on enhancing internal corporate governance and compliance.

• BharatPe is expected to receive final approval for payment aggregator and payment gateway licenses from the RBI soon.

• The company recently achieved EBITDA profitability and surpassed INR 1,500 Cr in annualized revenue.