Fintech firm BharatPe expects revenue to grow by around 30 percent in FY25, the year it also aims to turn full-year EBITDA positive, as it eyes an IPO in 18-24 months, according to CEO Nalin Negi . BharatPe is also merging its stake in Unity Small Finance Bank, and has roped in Rothschild to look for potential buyers.
Negi told PTI in an interview that BharatPe is open to small acquisitions, and companies that “add value to a particular process” will fit the bill.
“There are many fintechs that have started, some are doing well, some are not… Some definitely have an edge but they don’t have the right funding or resources, we are also looking at them,” said Negi.
The company is looking at a time frame of 18-24 months for the IPO, depending on market conditions.
“We are there, we are talking to people…have we appointed someone? No, at the moment, but we are having discussions, even at the management level and internal discussions…This is the way we have to go,” he said.
Regarding whether the company has started working on the pre-IPO checklist in terms of governance, compliance and financial metrics, he said the finances are being prepared, and the company is fully focused on regulatory and governance aspects.
“We feel, yes, we’re checking the boxes when it comes to processes, delivering consistent numbers…We’ve made a lot of investments in our systems and processes over the last 1-1.5 years…There’s still some work to be done,” he said.
Calling FY24 a “watershed” year for BharatPe financially, Negi said the company achieved Earnings Before Interest, Taxes, Depreciation, and EBITDA (EBITDA) for the first time in October 2023.
“We are looking at full EBITDA profitability by 2024-25, and that is what will happen in BharatPe,” he said expressing confidence in the company’s profitability trajectory.
Fintech startups are focused on the “building blocks of the future” with ongoing efforts, including the launch of connected devices, the renewal of royalties, the consumer app, among others.
“I hope that in January we will launch a branded credit card and before the end of the financial year we will launch a credit product, so while we are focused on growth and profitability, we are also guaranteeing. that new products and building blocks are there, to help us grow in the future,” he said.
The growth rate for FY25 will be close to 30 percent (less than FY24) and growth for FY26 will be higher.
“This year, we have made some changes in the rules and we were looking to build some things, so we held back – wisely – in some aspects… Now the growth… “We will be looking at 30 percent growth in FY25, and we will be happy to exceed that number, ” said Negi.
In FY24, BharatPe Group reported consistent growth across various business lines. The group’s consolidated EBITDA loss before share-based payment expenses fell by a whopping 75 percent year-on-year to Rs 209 crore.
Consolidated income from operations grew by 39 percent year-on-year to Rs 1,426 crore, and consolidated loss before tax reduced by 50 percent YoY, from Rs 941 crore to Rs 474 crore. BharatPe has seen consolidated cash burn fall by 85 per cent year-on-year.