BharatPe, a major fintech player in India, has reached a significant milestone by breaking even on an adjusted EBITDA level in the first nine months of FY25. The Ind-Ra rating agency reported that BharatPe reduced its consolidated net loss to INR 149 Cr in this period, compared to INR 492 Cr in FY24 and INR 927 Cr in FY23. A key driver for this progress has been its NBFC arm, Trillion Loans Fintech, which posted a profit of INR 29.7 Cr.
On the other hand, healthtech startup Dozee secured INR 71 Cr in funding, including INR 6.3 Cr in equity from C3H and INR 58.5 Cr in debt from Stockhausen International. Meanwhile, Ola Electric settled dues worth INR 26.75 Cr with Rosmerta Digital Services. PhonePe expanded into the vehicle insurance segment, and Pilgrim, a personal care brand, saw its revenue soar 160% to INR 198.8 Cr in FY24. The startup ecosystem witnessed several major developments, including Grow Indigo’s $10 Mn funding and Observe.AI’s acquisition of Dubdub.ai.
1. Understanding BharatPe’s Business Model
BharatPe operates in the fintech sector, focusing on digital payments, lending, and financial services for small businesses. The company provides QR-based UPI payments, POS machines, and merchant loans.
1.1 Revenue Model BharatPe earns revenue through merchant transactions, lending, and allied financial services. It facilitates working capital loans through its NBFC arm, Trillion Loans Fintech.
1.2 Funding Background Since its inception, BharatPe has raised significant funding from Sequoia Capital, Ribbit Capital, Coatue Management, and Tiger Global.
1.3 Founders and Leadership BharatPe was founded by Ashneer Grover, Shashvat Nakrani, and Bhavik Koladiya. Over the years, the company saw a leadership change, with Nalin Negi taking charge as interim CEO in 2022.
2. BharatPe’s Journey to Breakeven
2.1 Financial Performance BharatPe reported an EBITDA-positive month in October 2023. The fintech’s revenue jumped 182% YoY to INR 1,029 Cr in FY23, indicating strong growth.
2.2 NBFC’s Role in Profitability Trillion Loans Fintech significantly contributed to BharatPe’s breakeven, with its loan book expanding to INR 1,154.5 Cr in FY25 from INR 869.5 Cr in FY24.
2.3 Challenges and Future Outlook BharatPe still faces challenges in achieving consistent profitability and sustaining its super app ambitions. However, its IPO plans within the next 18-24 months could provide further momentum.
3. Dozee’s INR 71 Cr Funding and Market Impact
3.1 Business Model and Offerings Dozee provides contactless patient monitoring systems, helping hospitals and clinical staff monitor patients remotely.
3.2 Funding Breakdown Dozee secured INR 6.3 Cr in equity from C3H and INR 58.5 Cr in debt from Stockhausen International.
3.3 Market Position and Growth Potential With the growing demand for healthtech solutions, Dozee is well-positioned to expand its market reach.
4. Key Startup Developments
4.1 Ola Electric Settles Vendor Dues Ola Electric resolved pending dues of INR 26.75 Cr with Rosmerta Digital Services, ending an insolvency plea.
4.2 PhonePe Enters Vehicle Insurance PhonePe expanded into vehicle insurance, partnering with insurers for two-wheeler and four-wheeler policies.
4.3 Pilgrim’s Revenue Surge Pilgrim’s operating revenue grew 160% YoY to INR 198.8 Cr in FY24, though net losses increased by 14% to INR 26.3 Cr.
4.4 Funding and Acquisitions
- Grow Indigo secured $10 Mn from British International Investment.
- Observe.AI acquired Dubdub.ai to enhance its GenAI capabilities.
- Apna Mart seeks $25 Mn to scale operations in Tier II and III cities.
5. Learning for Startups and Entrepreneurs
5.1 Importance of a Sustainable Revenue Model Startups must diversify revenue streams, as seen in BharatPe’s lending division success.
5.2 Adapting to Market Needs Dozee’s funding reflects rising healthtech adoption, signaling the importance of solving real-world problems.
5.3 Financial Prudence and Vendor Relations Ola Electric’s settlement highlights the need for strong vendor management.
5.4 Exploring Expansion Opportunities PhonePe’s entry into vehicle insurance showcases the value of leveraging existing ecosystems to enter new markets.
The Startups News: Your Go-To Source for Startup Insights
At The Startups News, we bring you the latest startup updates, venture capital trends, funding announcements, and business strategies. Whether you’re looking for the best startup ideas, insights into Indian tech startups, or startup funding news, our platform covers it all. Stay ahead with the latest industry insights and startup ecosystem developments only on The Startups News.