BharatPe plans to raise pre-IPO funding of around ₹1,200cr
What's the story
BharatPe, a leading Indian fintech company, is gearing up to raise public capital for its next growth phase. The company has started the process of appointing bankers for an initial public offering (IPO) and plans to raise between ₹800 crore and ₹1,200 crore in a pre-IPO round. "We are working with investment banks to prepare for our upcoming IPO," BharatPe CEO Nalin Negi confirmed.
Financial outlook
BharatPe's valuation aligns with fintech peers
The pre-IPO exercise is likely to value BharatPe at 11.5-12x price-to-revenue, slightly lower than its ₹20,000 crore valuation during the last fundraising round in 2021. However, this multiple is on par with that of Paytm, its largest listed rival. Notably, BharatPe achieved profitability in FY25 after seven years of operations, much faster than Paytm which took 15 years to turn profitable in FY26, despite being four times larger than BharatPe.
Strategic moves
Merchant-centric approach drives growth
Despite operating on similar fintech models as Paytm, BharatPe has a different growth strategy. The company focuses on merchant-centric operations, which is expected to accelerate its expansion. Recently, BharatPe received RBI's nod to operate as a payment aggregator, an approval that will further bolster its merchant-focused expansion and enhance technological capabilities.
Investor interest
Coatue Management to invest $80-100M in BharatPe
Along with its IPO plans, BharatPe is also in advanced talks to raise $80-100 million from existing investor Coatue Management. This investment would further strengthen BharatPe's presence across various markets and support technology deployment. However, experts note that the company's lean, profitable model could pose a dilemma for investors: should they prioritize profitability at a smaller scale or focus on market size and growth potential.