BharatPe Secures $350 million from Tiger Global & Other Investors
BharatPe secures a $350 million fund, Tiger Global invests $100 million, and exiting investors such as Amplo, Insight Partners, Beenext, Sequoia Capital, and Steadview Capital, among others, participate.
Tiger Global Management is also eager to lead a $350 million round investment in BharatPe, which would increase the fintech startup's valuation to more than $2 billion, making it India's latest unicorn.
Tiger Global will invest $100 million alongside existing investors such as Amplo, Beenext, Sequoia Capital, Insight Partners, and Steadview Capital. Despite this, the discussion is at a “advanced” stage, and the investment round is expected to begin soon.
The development comes ahead of the company's plans to take over the troubled Punjab and Maharashtra Co-operative (PMC) Bank with Centrum Group, according to the report.
The Reserve Bank of India (RBI) approved the move in June under on-tap licencing guidelines. Over the next two years, BharatPe and Centrum will invest up to Rs. 2,224 crore ($250-300 million) in PMC Bank.
According to the RBI, the “in-principle” approval was granted specifically in response to Centrum Financial Services Limited's offer dated February 1, in response to the PMC Bank's Expression of Interest notification dated November 3, 2020.
The approval is granted in accordance with the general “Guidelines for ‘on tap' licencing of Small Finance Banks in the Private Sector” dated December 5, 2019, according to the RBI.
In February, BharatPe raised approximately $108 million in a Series D primary and secondary equity round led by Coatue Management for a $900 million valuation. PMC Bank had total deposits of Rs.10,727.12 crore, total advances of Rs. 4,472.78 crore, and gross NPA of Rs.3,518.89 crore as of March 2020.
The bank's share capital is 292.94 crore. During 2019-20, the bank made a net loss of Rs. 6,835 crore and has a negative net worth of Rs. 5,850.61 crore. In September 2019, the RBI took over the PMC Bank board.
Tiger Global Management is also eager to lead a $350 million round investment in BharatPe, which would increase the fintech startup's valuation to more than $2 billion, making it India's latest unicorn.
Tiger Global will invest $100 million alongside existing investors such as Amplo, Beenext, Sequoia Capital, Insight Partners, and Steadview Capital. Despite this, the discussion is at a “advanced” stage, and the investment round is expected to begin soon.
The development comes ahead of the company's plans to take over the troubled Punjab and Maharashtra Co-operative (PMC) Bank with Centrum Group, according to the report.
The Reserve Bank of India (RBI) approved the move in June under on-tap licencing guidelines. Over the next two years, BharatPe and Centrum will invest up to Rs. 2,224 crore ($250-300 million) in PMC Bank.
According to the RBI, the “in-principle” approval was granted specifically in response to Centrum Financial Services Limited's offer dated February 1, in response to the PMC Bank's Expression of Interest notification dated November 3, 2020.
The approval is granted in accordance with the general “Guidelines for ‘on tap' licencing of Small Finance Banks in the Private Sector” dated December 5, 2019, according to the RBI.
In February, BharatPe raised approximately $108 million in a Series D primary and secondary equity round led by Coatue Management for a $900 million valuation. PMC Bank had total deposits of Rs.10,727.12 crore, total advances of Rs. 4,472.78 crore, and gross NPA of Rs.3,518.89 crore as of March 2020.
The bank's share capital is 292.94 crore. During 2019-20, the bank made a net loss of Rs. 6,835 crore and has a negative net worth of Rs. 5,850.61 crore. In September 2019, the RBI took over the PMC Bank board.
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