Fintech Startup BharatPe valued at $2.85 billion, 19th Indian startup to join Unicorn Club
BharatPe, a startup that provides merchant payments solutions and other financial services, announced a $370 million Series E round led by Tiger Global, making it the latest unicorn to join the club as the funding frenzy in India's startup ecosystem continues.
The new round values BharatPe at $2.85 billion, making it the 19th Indian startup to become a 'unicorn' this year, a term used to refer to privately valued startups worth more than $1 billion.
Dragoneer Investor Group, Steadfast Capital, Sequoia Capital, Insight Partners, Coatue Management, Ribbit Capital, and Amplo were among the other investors in the round.
Only nine months ago, BharatPe was valued at more than $900 million. The secondary component of the $370 million is $20 million, allowing its angel investors and employees to cash out.
The funds will be used to expand the company's core business and to capitalise Punjab and Maharashtra Co-operative (PMC) Bank. The Reserve Bank of India (RBI) granted Centrum Financial Services Limited and BharatPe 'in-principle approval' to establish a small finance bank (SFB) on June 18, paving the way for the entity to take over the crisis-hit PMC Bank.
Ashneer Grover, co-founder of BharatPe, stated at the time that his first priority was to get the bank up and running, which he hoped would happen by the fourth quarter of calendar year 2021. BharatPe and Centrum would contribute $250-$300 million over the next two years as part of this.
Ashneer also created a stir in the startup community when he announced that BharatPe would give away BMW superbikes and a workcation in Dubai to entice engineers at a time when the war for talent is heating up in the industry.
“Our initial plan was to raise $250 million. However, the round was heavily oversubscribed. We believe that the $350 million primary raise will give us enough runway for the next three years, after which we may look at listing in the public markets. We still have cash in the bank from our Series C and D rounds and an overall liquidity runway of $500 million, which will keep us in good stead for future growth," said Grover. The current fundraise will be utilized to grow its existing lines of business 10-fold in next two years, according to Grover.
The new round values BharatPe at $2.85 billion, making it the 19th Indian startup to become a 'unicorn' this year, a term used to refer to privately valued startups worth more than $1 billion.
Dragoneer Investor Group, Steadfast Capital, Sequoia Capital, Insight Partners, Coatue Management, Ribbit Capital, and Amplo were among the other investors in the round.
Only nine months ago, BharatPe was valued at more than $900 million. The secondary component of the $370 million is $20 million, allowing its angel investors and employees to cash out.
The funds will be used to expand the company's core business and to capitalise Punjab and Maharashtra Co-operative (PMC) Bank. The Reserve Bank of India (RBI) granted Centrum Financial Services Limited and BharatPe 'in-principle approval' to establish a small finance bank (SFB) on June 18, paving the way for the entity to take over the crisis-hit PMC Bank.
Ashneer Grover, co-founder of BharatPe, stated at the time that his first priority was to get the bank up and running, which he hoped would happen by the fourth quarter of calendar year 2021. BharatPe and Centrum would contribute $250-$300 million over the next two years as part of this.
Ashneer also created a stir in the startup community when he announced that BharatPe would give away BMW superbikes and a workcation in Dubai to entice engineers at a time when the war for talent is heating up in the industry.
“Our initial plan was to raise $250 million. However, the round was heavily oversubscribed. We believe that the $350 million primary raise will give us enough runway for the next three years, after which we may look at listing in the public markets. We still have cash in the bank from our Series C and D rounds and an overall liquidity runway of $500 million, which will keep us in good stead for future growth," said Grover. The current fundraise will be utilized to grow its existing lines of business 10-fold in next two years, according to Grover.
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