BharatPe, financial services company for merchants, today announced that it has raised Rs 100 crores each as debt from IIFL Wealth and Asset Management, wealth and asset management companies and Northern Arc Capital, a debt platform.
With this seventh round of debt fund raise amounting to Rs. 200 crores ($28 million), BharatPe has raised a total of over Rs. 500 crores ($70 million) in debt at competitive rates, in the year 2021. The company also shared that it plans to raise $250 million in debt by the end of FY22.
Earlier this year, BharatPe had raised over Rs 300 crores from top venture debt funds (Alteria Capital, InnoVen Capital and Trifecta Capital), banks (ICICI Bank and Axis Bank) and NBFC (Northern Arc Capital).
Northern Arc is a platform that caters to the diverse credit requirements of under-served households and businesses, by providing efficient and reliable access to debt finance. With a proprietary integrated technology system called “Nimbus”, a customized credit underwriting approach and a tailored product suite, the company has raised over Rs 95,000 crores for its clients.
Commenting on the debt fund raise, Suhail Sameer, Chief Executive Officer, BharatPe, said, “We have witnessed a surge in demand for merchant loans, with multi-fold growth over the last one year. With the festive season coming up soon, we are committed to scale our lending vertical aggressively and have set a target of 10x growth in lending by FY23. We have set a target to raise $700 million in debt over the next two years to facilitate this credit growth and hence, will continue to explore partnership with domestic and international investors, ranging from banks, NBFCs, credit funds, large pension funds and impact investors / development financial institutions.”
“We look forward to this being the first step in a long and fruitful relationship”, said Pranob Gupta, Senior EVP, IIFL Wealth and Asset Management.
Nishit Sharma, Chief Revenue Officer, BharatPe, “This latest tranche of debt is a great validation for our business model. We are committed to empower our merchant partners and intend to build a loan book of $1 billion by March 2023. As we expand our offering across new cities, we will also be adding secured lending products such as Gold loans and Two-wheeler loans to our existing set of offerings for merchants.”
Commenting on the transaction, Bama Balakrishnan, COO, Northern Arc said, “We believe that technology, coupled with the right financial products, can empower under-served small enterprises, merchants and households. We hope to deepen and widen this partnership across products, offerings and investor segments. ”
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)