BharatPe is a Fintech(Fintech is a broad term that includes a wide range of financial services, financial planning, and financial products designed to make the financial system more efficient, more efficient, and more effective for people) company headquartered in Bangalore. This payment aggregator has enabled transactions without any fees. It has leveraged UPI to allow this. It enables the use of UPI, which has been a massive step in the growth of the fintech space.
BharatPe, an independent fintech company, was founded in March 2018 and operated on the premise of providing a payment aggregator that can offer different financial services at a cost-effective price. It is also the first company in India to give a UPI payment gateway and has enabled transactions without any charge.
Bharatpe provides a range of fintech products, including interoperable QR codes for UPI payments, Bharat Swipe (POS machine) for card acceptance, and small business financing. It was founded in 2018 with the vision of evolving the payment system of India. They are a team of payment and technology experts who have been working at some of the best banks and payment platforms in the world. It is one of the leading providers of fintech products that offer consumers an alternative to conventional cards and payments.
BharatPe became very popular after its launch in 2018 among people in business as it solved a unique problem. BharatPe’s boost generally happened during the pandemic when no payment app charged transaction fees. It is a payment processing engine that offers businesses a range of services and tools to make their lives easier.
Founders of BharatePe
Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani co-founded Bharatpe.
Grover is the Co-founder & Former Managing Director (Resigned on Feb 28, 2022), Bhavik is the Co-founder & Chief Executive Officer, and Nakrani is the Co-founder & Chief Technology Officer. They are responsible for the overall strategy, execution, and development of BharatPe.
In 2018, Ashneer was one of the top 5 startups to watch out for by Tech.
BharatPe: How Does It Work?
BharatPe, a fintech startup based in Bangalore, has launched a new payment solution that does away with a lot of conventional banking methods. It uses its proprietary technology to provide a range of fintech products.
The company has been successful in its business model and has provided a wide range of financial products to businesses. BPNK is a payment platform that has been designed to serve the needs of people in India.
It was a mobile application launched in 2018. To make it easy to access financial services, BharatPe has started an app for that purpose. The App is available free of cost, and you can download it via the Google Play store.
- In April 2020, the company started providing loans to small businesses. BharatPe’s growth is attributed to the fact that the company has provided a wide range of products missing in the market. The lockdown has been one of the best things that could have happened, as it has allowed the company to develop its fintech platform. Because of the pandemic, the customer base has increased.
- It is the first company in India to offer a UPI payment gateway and has enabled transactions without any charge. It has also developed a wide range of financial products, including loans to small-scale businesses.
- Payment gateways (UPI, NEFT, RTGS) – BharatPe is the first provider in India to have a UPI (Unified Payment Interface) payment gateway.
“We have been able to create a complete product ecosystem. We have been able to create a product that serves the needs of Indian customers. When you go to any fintech company in India, they will tell you, ‘we have an app, but it is not user-friendly. We have a website, but it is too heavy.’ “Why we are here is because of you,” says Grover. “We are not in the market because of fintech. We are in fintech because of you. You have shown us the true potential of what we can do and where we can help you.”
BharatPe was named one of the top 5 startups to watch out for by Tech In Asia in 2018. It has a unique business model called ‘Zero Cost.’ BPNK, the payment platform that BharatPe has launched, offers the facility of sending money to anyone via UPI. We can also use it to pay for a product or a service.
Business Model
They make money by charging 1% of the amount of the transaction taken. This transaction fee helps BharatPe sustain its operations.
They have developed a model that ensures that they can offer to finance no matter how small the business is. They provide loans to farmers’ small and medium enterprises. They provide loans to their customers at zero cost.
BharatPe is the only player in the lending space that has developed a business model that offers loans to SMBs and corporate entities.
The company’s revenue model is based on the principle that it will make money if it can connect the right loan to the right business owner. BharatPe earns revenue by charging businesses with loans from BharatPe a small fee. It also makes its revenue by providing macro to microloans to its business owner.
Conclusion
On Mar 23, 2020, BharatPe announced that its loan disbursement had crossed Rs 5,000 crore. It was the first time in history that a startup has managed to provide so many loans at zero cost to its customers.
It started as a social community where any business owner would be free to ask for a loan from their peers.
“For me, it’s like I now have my bank account. I can now borrow money and pay back the money whenever I need to pay back the loan,” says one of the loan recipients.
In 2019, the company had a turnover of INR 15 crore, while its cost of operations was only INR 2.5 crore.
“If we are to succeed, we need our customers, and our customers need us, and we need them,” says Grover. They have set up a model where the customer is now the business partner. The customer has a voice, an opinion, and he can express it.
