BharatPe, a prominent unicorn fintech firm, is strategically planning for an initial public offering (IPO), though the listing will only proceed when market conditions are deemed favorable. This move follows the company's significant achievement of operational profitability, specifically after excluding employee stock ownership plan (ESOP) expenses. According to BharatPe CEO Nalin Negi, the company has consistently met its self-set goals, with maintaining profitability being a key objective before considering an IPO. A pre-IPO funding round is anticipated, but the actual IPO is not slated for the current financial year (FY25); any plans beyond that are contingent on suitable market conditions.

The company demonstrated a robust financial turnaround, concluding FY25 with a ₹6 crore adjusted profit before tax (excluding ESOP expense), a remarkable recovery from a substantial loss of ₹342 crore in FY24. Negi highlighted that a consistent display of strong performance is crucial for building investor confidence in anticipation of a future IPO. BharatPe enjoys the backing of several prestigious investors, including Peak XV,Tiger Global, Beenext, Steadfast Capital, and Ribbit Capital, underscoring its strong market position and potential.

Photo Credit: Business Standard

BharatPe distinguishes itself in the fintech landscape by possessing a unique operational structure. It is the only fintech player with an NBFC arm, Trillionloans, holds a stake in a Small Finance Bank, Unity SFB,and has secured an online Payment Aggregator (PA) license. In April, the Reserve Bank of India (RBI)granted BharatPe final authorization to operate as an online Payment Aggregator. This crucial permit is expected to enable BharatPe to significantly scale its payment solutions to a broader merchant base, deepen its market penetration in tier 2 and tier 3 cities, and invest in advanced technology infrastructure to support high-growth sectors. Furthermore, the company has increased its stake in its lending subsidiary, Trillionloans, to 74 percent, strengthening its integrated financial services ecosystem.