What goes on behind the scenes at BharatPe?
The three-year-old fintech is poised to realize CEO Ashneer Grover’s vision of banking. But many questions remain.
Why read this story?
Editor's note: Here's a young fintech startup—a little over three years old—that is soon to be one half of an honest to goodness bank. The company, which has in just a couple of years of operations built a name for itself by getting small businesses across India to accept payments using QR codes and UPI, has for some time now been pushing hard on building out its lending business. In fiscal year 2020-21, it disbursed about Rs 1,600 crore in loans, on the back of partnerships with non-bank and P2P lenders. But for Ashneer Grover, co-founder and CEO of the Delhi-based startup, this was never going to be enough—the path to building a large loan book for him lay in lowering the cost of funds as much as possible, which ultimately means a bank on the back-end. Getting a banking licence, though, is no small feat in India. BharatPe has also tried and failed to get a non-banking financial company, or NBFC, licence, which is relatively easier. So, the company considered instead investing in an existing bank, also a rather audacious goal. …
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