BharatPe plans to raise funds before its initial public offering but does not expect to list in the current financial year, CEO Nalin Negi said.

The IPO will be considered when market conditions are more favorable.

The fintech company reported an adjusted profit before tax of 6 crore rupee (US$685,806) for FY25, excluding employee stock ownership expenses, compared to a loss of 342 crore rupee (US$39 million) in FY24.

BharatPe recently received final approval from the Reserve Bank of India to operate as an online payment aggregator.

The company has also raised its stake in its lending arm, Trillionloans, to 74%.

BharatPe counts Peak XV, Tiger Global, Beenext, Steadfast Capital, and Ribbit Capital among its investors.

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🔗 Source: Press Trust of India

🧠 Food for thought

1️⃣ Fintech profitability milestone coincides with improving but selective IPO market

BharatPe’s achievement of operational profitability comes at a strategically opportune time for Indian IPOs, though market timing remains crucial.

India’s IPO market raised $4.6 billion in the first half of 2025, and despite a 30% decline in transaction volume, the quality and scale of offerings remained strong 1.

The broader Indian equity capital markets hit a record $70 billion in deal volumes in 2024, with IPOs accounting for around $19 billion, driven significantly by domestic investors who contributed three-quarters of the capital 2.

However, BharatPe’s caution about waiting for favorable market conditions aligns with recent IPO market volatility. The second half of FY25 saw subdued activity with only 11 IPOs in Q4 due to foreign portfolio investor sell-offs 3.

The company’s decision to pursue pre-IPO funding first reflects a measured approach that many successful Indian IPOs have adopted, allowing them to demonstrate sustained profitability before facing public market scrutiny.

2️⃣ Lending-focused fintechs face headwinds as investors shift toward lower-risk models

BharatPe’s heavy reliance on lending through its NBFC arm and 74% stake in Trillionloans comes as global fintech investors are moving away from high-risk lending models.

Global fintech funding rebounded to $11 billion in Q2 2025, but investors are explicitly shifting focus away from high-risk categories like digital lending and neobanks, favoring sectors with recurring revenue models instead 4.

This trend poses challenges for BharatPe, since as early as 2019, the company’s CEO acknowledged that payment processing wasn’t profitable and that “the lending business is crucial for revenue generation” 5.

The company processed over $83 million in monthly transaction value through 1.5 million merchants by 2019, but the core business model depends on lending products starting at approximately $500 for new users 5.

As mega funding rounds more than doubled in Q2 2025, the capital is flowing toward fintech firms with “established market demand” rather than growth-at-all-costs models that characterize many lending-focused platforms 4.

Recent BharatPe developments

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