Bharatpe Business model|How Does Bharatpe Make Money?
BharatPe is an Indian fintech company that offers QR code-based payment solutions. It allows merchants to accept payments through a unified payments interface (UPI) and BharatPe also provides merchant acquiring and lending products. The company was founded in 2018 by Ashneer Grover and Shashvat Nakrani and is headquartered in New Delhi.
What is Bharatpe company?
BharatPe is a payments company based in India that allows merchants to accept digital payments from customers. The company was founded in 2018 by Ashneer Grover and ShashiMesh Tripathi and has since then grown rapidly, reaching over 1 million merchants across the country. BharatPe is headquartered in Delhi, with offices in Mumbai, Bangalore, and Kolkata.
The company offers a suite of products that includes a point-of-sale (POS) app, a QR code scanner, and a mobile wallet. The POS app allows merchants to accept payments via credit/debit card, UPI (unified payments interface), or BharatQR codes. The QR code scanner can be used to scan BharatQR codes or UPI QR codes to make payments. The mobile wallet can be used to store money and make payments at merchant outlets.
Who is Bharatpe CEO?
Suhail Sameer.
Bharatpe Business model
In contrast to PhonePe and GooglePe, the BharatPe UPI creators chose to develop a single QR Code application. The payment mechanism was closed-loop prior to the introduction of BharatPe. If the merchant was registered with PhonePe, he or she was required to utilize just a legitimate PhonePe QR code for the transaction.
Due to the interoperability of QR codes for payments, BharatPe’s unique value proposition attracted a large number of merchants upon its introduction to the market. Zero MDR is another factor that helped retailers increase acceptance of the BharatPe.
BharatPe has a very unique way of doing business, which has led to its rapid growth. During the pandemic is when BharatPe grew the most. During this time, they came up with a smart way to grow. They used UPI to make transactions completely free. This was something that BharatPe offered when its competitors were charging less than 1.5%. Because of this, a lot of sellers began to move to BharatPe.
By making transactions free, the platform got more people to use it. It was also a way to market BharatPe in a roundabout way. When the vendors joined this platform, they started to learn a lot about it. The platform has been made to handle all kinds of payments in one place. They have come up with many different kinds of goods to meet people’s needs.
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The company has come out with the Xtraincome card, which is a simple way for business owners to make transactions. It also gives you 1% cash back every time you use it to buy something.
The main problems that businesspeople have are being fixed by these apps. In addition to this, they have also made BharatSwipe, which is a new way to swap cards. BharatPe digital gold is the name of another item.
How Does Bharatpe Make Money?
The company has made an algorithm that is backed by artificial intelligence (AI) and looks at the transactions of merchants to try to figure out the cash flow of the business.
This information is then used to find out about the merchant’s loan history and credit score. This is done so that a willing debtor can get a loan from an NBFC partner of BharatPe without having to put up any collateral. These loans are unsecured and range from INR 20,000 to INR 7 lakhs. They last for 12 months and cost the debtor 2% per month. At the moment, BharatPe handles about 300 crores worth of loans each month.
What is Unique About BharatPe?
BharatPe generates money by providing company owners with a macro to microloans. In the past, a working professional or businessman could obtain a loan with relative ease, but small company owners with a poor CIBIL score have difficulties when asking for a loan.
The startup has developed an artificial intelligence (AI)-powered system that analyzes merchant transactions to predict cash flow. To learn more about the merchant’s loan history and credit score, this data is put to use. In this way, a creditworthy borrower can obtain a loan from a BharatPe-affiliated NBFC without having to put up any collateral.
The amount of these loans is between 20,000 and 7,000,000 INR, and they are all unsecured. They have a term length of 12 months and a monthly fee to the debtor of 2%. BharatPe now processes monthly loan amounts of over 300 crores.
BharatPe keeps track of the person’s transactions through its products like Xtremecards and figures out if they can pay back the loan. It says that they give small business owners microloans without a lot of paperwork. They don’t use the CIBIL score to give out loans. Small businesses have real problems that this solution solves. This is the main way the app makes money.
Bharatpe Valuation
At present, Delhi-based BharatPe is valued at $2.8 billion.
The company has over 10 million merchant customers and processes more than $5 billion in annual transactions.
The History of Bharatpe
Ashneer Grover and Shashvat Nakrani started BharatPe in 2018 with the goal of building a complete FinTech platform for small merchants. The company wants to help more than 50 million small and medium-sized businesses (SMEs) by giving them access to its range of financial products that are made just for them.
BharatPe was the first company to launch an interoperable zero MDR UPI QR. The company’s goal for 2018 is to make digital payments available to everyone. BharatPe has become the country’s number one offline acquirer for UPI QR transactions in just two years. With an annualized TPV of over US$ 7 bn, the company has been handling more than 5 crore UPI transactions every month.
Today, BharatPe is an app that offers loans, investments, insurance, and other financial services for small and medium-sized businesses. At the moment, it has a large network of more than 5 million merchants in 35 cities across the country. The company wants to be in 65 more cities by the end of December 2020.
The company is also the first to work with a P2P NBFC to offer an investment product. More than 150 apps can now accept UPI payments, and the company is the first to partner with a P2P NBFC. BharatPe has a unique product called P2P Lending. With this product, BharatPe’s merchants can get 1M/3M/6M/12M loans starting at INR 25k and going up to INR 7 Lakhs at competitive rates and pay them back in the form of EDIs (Easy Daily Installments).
The company’s lending business has been growing well, and since its launch, it has helped its merchants get more than 40,000 loans worth more than Rs. 500 crores. It has set a goal of giving out loans worth Rs. 1 trillion by the end of the fiscal year.
When it comes out in July 2020, BharatSwipe will be the first POS machine of its kind that can accept payments from a variety of debit and credit cards without any transaction fees. The company has already set up 35,000 POS machines, and by the end of the fiscal year, it wants to have set up 1 lac POS machines. After only three months, BharatPe’s POS business has reached an annualized transaction value of US$2 billion.
The company has won a number of awards and praise for the good work it has done to help small and medium-sized businesses (SMEs).
The Government of India and the Ministry of Electronics and Information Technology (MeiTY) gave BharatPe an award for Innovation in Digital Payment at its annual awards ceremony in August 2019. This was in recognition of BharatPe’s work to help digitize India at the local level.
This year, BharatPe was also one of the top 20 Indian start-ups on the CB Insights List of the world’s most promising fintech companies. BharatPe was recently named one of the winners of the National Startup Awards, which were put on by the Indian government.
It was the only winner in the “finance” category for startups.
BharatPe wants to grow into a full-fledged digital bank for business owners. BharatPe tries to use the best technology to make financial products that are easy for merchants to use and fit their needs.
Over four rounds of funding, the company has gotten close to US$ 143 million from experienced and high-quality investors from all over the world. Beenext, Sequoia, SteadView Capital, Ribbit Capital, Coatue Management LLC, and Insight Partners are among the top investors in BharatPe.
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Conclusion-(Summary of How Does Bharatpe Make Money?)
In conclusion, the Bharatpe business model is one that is built on providing access to financial services for the underbanked and underserved population in India. By partnering with local merchants and providing them with point-of-sale devices, Bharatpe is able to offer its customers a convenient way to pay for their everyday purchases. In addition, by offering loans and other financial products, Bharatpe is able to provide its customers with the means to improve their economic circumstances.