BharatPe Reports Rs 209 Crore EBITDA Loss in FY24

The BharatPe Group, a prominent player in the fintech sector, has recently disclosed its financial results for the fiscal year 2023-24. The company reported a consolidated EBITDA loss of Rs 209 crore, which is a significant figure indicating the challenges it faced during this period. However, amidst this loss, there are some positive signs that suggest growth and potential for the future.

In terms of revenue, BharatPe saw a remarkable increase of 39 percent year-on-year, with its consolidated revenue from operations rising from Rs 1,029 crore to Rs 1,426 crore. This growth in revenue is a positive indicator of the company's ability to attract more business, even as it navigates through financial losses. Additionally, the consolidated loss before tax was halved, dropping from Rs 941 crore to Rs 474 crore, showcasing the company's efforts to improve its financial health.

One of the standout achievements for BharatPe in FY24 was the growth of its average merchant lending portfolio, which increased by 40 percent compared to the previous year. This growth reflects the company's commitment to supporting merchants through its lending services. Furthermore, BharatPe reported a significant reduction in its cash burn, which was cut by 85 percent on a year-on-year basis. This reduction is crucial for the company's sustainability and indicates a more disciplined approach to managing expenses.

CEO Nalin Negi expressed optimism about the company's trajectory, stating, "FY24 was a milestone year for us as BharatPe turned EBITDA positive in October 2024." This statement highlights the company's goal of achieving profitability and suggests that it is on the right path. Negi also emphasized the importance of partnerships with established financial institutions, which have helped extend credit access to merchants, validating BharatPe's business model.

In a strategic move to diversify its offerings, BharatPe has rebranded its PostPe app to BharatPe, marking its entry into the consumer payments space. This rebranding is part of a broader strategy to expand its portfolio and drive business growth. The company has successfully raised over US$583 million in equity, attracting investments from notable firms such as Peak XV Partners and Tiger Global.

While BharatPe Group has reported a substantial EBITDA loss for FY24, the company is making strides in revenue growth, reducing losses, and expanding its services. The fintech landscape is highly competitive, and BharatPe's ability to adapt and innovate will be crucial for its future success. As the company continues to focus on building a sustainable and profitable business, stakeholders will be keenly watching its next moves in the ever-evolving financial technology sector.