BharatPe Prepares IPO, Highlights Profitability Edge Over Paytm

Indian fintech major BharatPe is preparing to step into the public markets. Sources suggest that the company has begun lining up bankers to facilitate its much-anticipated Initial Public Offering (IPO).

Confirming the development, BharatPe CEO Nalin Negi stated, “BharatPe is on track to raise funds before the company debuts on Dalal Street.”

The move marks a crucial step for the Delhi-based fintech, which has rapidly expanded in the merchant payments and lending space. Unlike many of its competitors, BharatPe is banking on profitability as its key differentiator — something that sets it apart from its bigger rival Paytm.

BharatPe’s IPO Plans

According to insiders, BharatPe is targeting ₹800–1,200 crore in a pre-IPO fundraising round, which is expected to value the firm at 11.5–12 times its revenues. This valuation is notably lower than its peak ₹20,000 crore in 2021, but aligns closely with Paytm’s current 11x revenue multiple.

Analysts note that this leaner valuation could attract institutional investors, particularly since profitability is becoming a key filter for fintech investments amid tighter market conditions.

Profitability: BharatPe vs. Paytm

The sharp contrast between the two fintech giants lies in their path to profitability.

• BharatPe turned profitable in FY25, achieving this milestone just seven years after its launch.

• Paytm, despite being nearly four times larger, took 15 years and only became profitable in FY26.

This achievement is being positioned as BharatPe’s biggest selling point ahead of its IPO.

Scale and Revenue Comparison

When it comes to size and scale, Paytm still holds a commanding lead:

• Paytm revenues in FY25: ₹6,900 crore

• BharatPe revenues in FY25: ₹1,500 crore

Paytm also enjoys a larger merchant base, higher total payment value (TPV), and bigger loan disbursements.

However, BharatPe is ahead on profitability metrics:

• BharatPe’s operating margin: 7.3%

• Paytm’s operating margin: 4%

This profitability cushion could prove attractive for investors seeking stability in an otherwise competitive fintech market.

Strategic Focus: Lending as Growth Driver

The two firms have diverging strategies:

• Paytm remains diversified, with a mix of payments, financial services, and commerce.

• BharatPe is betting big on credit, with lending contributing 57% of revenues, compared to 27% for Paytm.

To strengthen this vertical, BharatPe has raised its stake in its lending arm, Trillionloans. This move underlines its strategy of becoming a merchant-focused, credit-driven fintech.

Regulatory Approval and Fresh Capital

BharatPe has secured RBI’s approval to operate as a payment aggregator, a development that further strengthens its regulatory standing. Additionally, the company is in advanced talks to raise $80–100 million from Coatue Management, a US-based investment firm.

These steps are expected to help BharatPe enter the IPO markets with a stronger balance sheet and focused business model.

Investor Dilemma: Profitability vs. Scale

While BharatPe’s profitability edge is undeniable, the big question for investors will be:

• Should they bet on BharatPe’s lean and profitable model?

• Or opt for Paytm’s vast scale and diversified reach?

This comparison is likely to dominate market discussions as BharatPe finalizes its IPO roadmap.

About BharatPe

BharatPe is an Indian fintech company that provides digital payment and financial services to small merchants and kirana store owners. Founded in 2018, it has become a significant player in India's digital payments and lending landscape.

Key Aspects of BharatPe

• Business Model: BharatPe's core business model revolves around a merchant-first approach. It initially gained traction by offering an interoperable UPI QR code with a zero Merchant Discount Rate (MDR), meaning merchants didn't have to pay a fee for accepting digital payments. This was a major differentiator. While digital payments are a key entry point, the company's primary revenue streams come from a range of financial services offered to these merchants. These services include:

  • Business Loans: Providing unsecured, short-term loans to merchants, a segment often underserved by traditional banks.

  • Card Acceptance: The company also launched a point-of-sale (POS) terminal, "BharatSwipe," to enable card payments.

  • "Buy Now, Pay Later" (BNPL): The company has also ventured into the BNPL space with its "postpe" product, which provides credit to consumers.

  • Other Services: BharatPe has also introduced services like a voice-based payment notification device called "BharatPe Speaker."

• Founders: BharatPe was founded by Ashneer Grover and Shashvat Nakrani. Bhavik Koladiya was also part of the founding team. Ashneer Grover served as the CEO and was a prominent public face of the company, known for his role as a judge on the TV show Shark Tank India.

Conclusion

BharatPe’s planned IPO marks a new chapter for the Indian fintech space, signaling a shift in investor focus from hyper-growth to profitability. While Paytm continues to dominate in terms of scale and reach, BharatPe’s ability to deliver profits faster and maintain stronger margins could give it a unique positioning in the market.

For investors, the choice will ultimately boil down to whether they prioritize profitability and focused growth (BharatPe) or scale and diversification (Paytm). Either way, the BharatPe IPO is set to become one of the most closely watched listings in India’s fintech sector in 2025.