According to CEO Nalin Negi, the fintech company BharatPe anticipates a 30% increase in sales in FY25, the year it also hopes to turn full-year EBITDA positive and prepare for an IPO in 18 to 24 months. In addition to reducing its ownership of Unity Small Finance Bank, BharatPe has hired Rothschild to look for possible purchasers.
BharatPe is open to small acquisitions, Negi told PTI in an interview, and businesses that "add value to a particular process" will be a good fit.
"Many fintechs have emerged; some are succeeding, while others are failing... We are also considering those who have a distinct advantage but lack the necessary funds or resources, Negi stated.
Depending on the state of the market, the company anticipates an IPO in 18 to 24 months.
"We are present and conversing with individuals...Have we made any appointments? No, not yet, but we are having discussions—even internally and at managerial levels.For us, it's the best course of action," he stated.
He said that the company is totally focused on the control and governance components and that the financials are streamlined when asked if it has begun working on the pre-IPO checklist on governance, compliance, and financial metrics.
"We believe that we are meeting all requirements in terms of procedures and delivering reliable figures.Over the past one to one and a half years, we have made significant investments in our systems and procedures.Some work has to be done," he said.
Negi called FY24 a "watershed" year for BharatPe's finances, stating that the business attained profitability for the first time in October 2023 in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
"We are looking at a full-year EBITDA profitability in 2024-25, and that is what is going to happen for BharatPe," he stated, demonstrating his confidence in the business's chances of becoming profitable.
The financial startup has been concentrating on the "building blocks for future" with a lot of work. Some of the things they have done include launching all-in-one gadgets, revamping royalty rewards, and creating consumer apps.
"I am hoping that in January, we will launch a co-branded credit card and before the end of financial year, we will also launch a credit line product, so while we are focused on growth and getting the profitability, we are also ensuring that new products and building blocks are in place, to help us grow in future," he stated.
While FY26 will see stronger growth, FY25's growth rate will be close to 30%, which is lower than FY24's.
"We cautiously held back on several parts this year due to changes in legislation and our desire to construct specific things.On some progress...We are now returning to full expansion mode in January.In FY25, we anticipate growth of about 30%, and we would be pleased to surpass that figure," Negi stated.
The BharatPe Group reported steady growth in all of its business divisions for FY24. Prior to share-based payment expenses, the group's consolidated EBITDA deficit was Rs 209 crore, a significant 75% year-over-year decrease.
Consolidated operating income increased by 39% year over year to Rs 1,426 crore, while consolidated loss before tax decreased by 50% year over year to Rs 474 crore from Rs 941 crore. Every year, BharatPe's combined cash burn decreased by 85%.
