BharatPe Secures $10 Million Debt Funding from Trifecta and InnoVen

Fintech firm BharatPe has successfully raised Rs 85 crore (approximately $10 million) through the issuance of non-convertible debentures (NCDs). This marks the second significant debt infusion for the company in 2024.

According to BharatPe's regulatory filing with the Registrar of Companies, the company issued 500 Series E1 debentures valued at Rs 10,00,000 each and 3,500 Series F1 debentures priced at Rs 1,00,000 each to achieve this funding.

Contributors to the Debt Round

The debt financing was provided by Trifecta Venture Debt and Innoven Capital. Trifecta contributed Rs 50 crore, while Innoven Capital invested Rs 35 crore. This infusion follows an earlier debt round in which BharatPe raised $100 million.

InnoVen Capital was anticipated to invest $60-70 million in this round, with the remaining capital provided by Credit Saison for BharatPe’s NBFC arm, Trillion Loans. BharatPe is currently clarifying whether the recent investment from Innoven Capital is part of the earlier amount or a new addition.

Reasons for Choosing Debt Over Equity

Sources close to BharatPe have indicated that the company opted for debt financing as it approaches break-even and aims to avoid diluting equity. BharatPe had its last equity round in August 2021, which marked its entry into the unicorn club.

To date, the company has raised over $650 million in equity and debt from prominent investors such as Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, and Ribbit Capital.

Financial Performance and Future Outlook

According to TheArch report, BharatPe has shown notable improvements in its financial performance. The company's operating revenue increased by 16% to Rs 1,370 crore in FY24, up from Rs 1,029 crore in FY23.

Additionally, BharatPe reported a 70% reduction in losses, bringing them down to Rs 270 crore in the last fiscal year. This financial stability may have influenced BharatPe's decision to opt for debt funding as it continues to strengthen its market position and pursue future growth opportunities.