BharatPe’s Financial Turnaround in FY25

BharatPe, a prominent fintech unicorn, experienced a significant turnaround in the previous fiscal year, witnessing continuous growth in scale while achieving EBITDA profitability. The organisation successfully reduced its losses by over 80% during FY25.

Revenue Growth in FY25

BharatPe’s operational revenue increased by 16.9%, reaching Rs 1,667 crore in FY25, up from Rs 1,426 crore in FY24, as indicated by the consolidated annual financials accessed by Startup Superb. The service fee income, which encompasses processing charges, loan transaction commissions, and rental income from machine and loudspeaker sales, served as the primary revenue source for BharatPe, contributing 77.6% of the operational revenue. This category witnessed a year-on-year growth of 15.8%, amounting to Rs 1,456 crore in FY25.

Expansion of NBFC Revenue

Revenue from the NBFC segment increased to Rs 211 crore in FY25, compared to Rs 165 crore in FY24. Additionally, the company recorded non-operating income of Rs 67 crore, bringing the total revenue for the year to Rs 1,734 crore.

Cost Management and Expenditure

Transaction processing expenses represented 20.8% of the overall cost structure, amounting to Rs 391 crore in FY25. Employee benefits saw a consistent figure of Rs 360 crore, which includes Rs 148.5 crore attributed to ESOP (share-based payments). Notably, advertising expenditures fell by a substantial 84% to Rs 26 crore during this fiscal period. Other overhead costs, including outsourced services, merchant onboarding, and IT expenses, contributed to a total expenditure of Rs 1,876 crore by the end of March 2025.

Reduction in Losses

The substantial growth in scale, combined with effective cost management strategies, enabled BharatPe to reduce its losses by 82.1%, with a total of Rs 88 crore in FY25, down from Rs 492 crore in FY24. Significantly, BharatPe reported a positive EBITDA of Rs 47 crore for FY25. When removing ESOP-related expenses, the adjusted EBITDA for the year would tally at Rs 195.5 crore.

Financial Metrics Improvement

BharatPe’s return on capital employed (ROCE) and EBITDA margins improved to -3.8% and 2.82%, respectively, in FY25. On a unit basis, the company spent Rs 1.13 to generate a revenue of one rupee in FY25. By the close of the previous fiscal year, BharatPe’s total current assets stood at Rs 2,685 crore, including cash and bank balances of Rs 872 crore.

Recent Transactions

Earlier this month, BharatPe completed its first secondary transaction since 2021, achieving a valuation of $2.85 billion. To date, the fintech unicorn has raised over $650 million in equity and debt from various investors, including Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue, and more.