Fintech firm BharatPe’s revenue grew 20 times in FY21. However, the company’s losses also increased by 77 per cent during the same period. BharatPe has been in the news in the last few months due to the controversies surrounding its co-founder Ashneer Grover and his removal from the company.
During the Corona epidemic in FY21, small shopkeepers increasingly adopted digital payments, which helped BharatPe increase its income or revenue. Apart from this, increased lending to shopkeepers and customers of smaller sizes also helped the company to generate more revenue.
According to the company’s regulatory filings, BharatPe’s revenue stood at Rs 119 crore in FY21, up from just Rs 6 crore in the previous financial year. With this, the company’s loss also increased to Rs 1,619 crore from Rs 912 crore in its previous financial year. A 93 percent increase in the company’s expenses was the main reason behind the increase in its losses. The company spent heavily during the financial year to increase its presence in the market.
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Total loss of Rs 2,961 crore
The company’s expenditure during FY21 stood at Rs 1,804 crore as against Rs 934 crore in its previous fiscal. In addition to the loss that BharatPe reported in FY21, it has incurred a loss of Rs 1,342 crore due to change in fair value of Compulsory Convertible Preference (CCPS) from Rs 705 crore in the previous fiscal. If this is also added, the company has a total loss of Rs 2,961 crore in FY 2021.
The company recorded record growth in the month of March
One day from this, BharatPe CEO Suhail Sameer told that the company recorded its highest ever record growth in March 2022. In a post written on the social media platform LinkedIn, Suhail Sameer said, We have ended the financial year with a bang. This has been our best month and best quarter so far in terms of performance. We have registered a growth of 15 to 40 per cent in all the segments.” Suhail Sameer also said that the company is on the path to come out of losses soon and will also bring its IPO (BharatPe IPO) in the next 18 to 24 months. is preparing.
Company has presence in 225 cities
BharatPe allows shoppers to make digital payments through QR codes. In addition, it also gives loans to shopkeepers. Now the company has presence in 225 cities. More than 80 lakh merchants are now connected to the company’s platform. In the financial year ended March 31, 2021, their number was 50 lakh.
The company was in the news due to the controversy related to Ashneer Grover
BharatPe has been in the news for some time due to controversies related to Ashneer Grover. Ashneer Grover and his wife Madhuri Jain were accused of misappropriating money in the governance audit conducted by the company. After this BharatPe removed both the couple from the company.
Ashneer Grover had tendered his resignation from the company late on 28 February. At the same time, a day later, his wife was removed from the post of Head of Controls of Bharatpe. Although Ashneer and his wife have always maintained that they have been fired from the company on false allegations and unfairly, they have repeatedly blamed CEO Suhail Sameer and Chairman Rajnish Kumar for this.