BharatPe Acquires Majority Stake in Trillion Loans to Strengthen Lending Business
- ByStartupStory | March 22, 2023
According to reports, BharatPe, a prominent fintech company, has acquired a majority stake in Mumbai-based NBFC Trillion Loans Fintech. Sources state that the deal was worth around INR 300 Cr, and BharatPe has already received approval from the Reserve Bank of India to purchase a 51% stake in the NBFC.
BharatPe’s acquisition of a majority stake in Trillion Loans Fintech will provide an opportunity for the company to establish itself in the lending sector. With an NBFC license, BharatPe will have a less cumbersome process for offering loans and credit facilities. This move will also enable BharatPe to avoid over-dependence on specific NBFCs and expand its offerings according to its terms. Trillion Loans Fintech, founded by Achal Mittal and Gautam Adukia, facilitates gold loans with direct money transfers. Interestingly, both Mittal and Adukia are also founders of the P2P lending platform Liquiloans, which works closely with BharatPe and Kunal Shah-led fintech startup CRED. BharatPe’s P2P investment product is powered by Liquiloans, which has been accused of flouting P2P lending norms in the past.
Despite Reserve Bank of India’s reluctance in granting NBFC and P2P lending licenses, Liquiloans has obtained the mandate for both licenses. Livemint’s report also highlighted that Trillion Loans Fintech’s co-founder, Achal Mittal, is the son of a former RBI official, Ajit Mittal, who currently serves on the board of Indiabulls Housing Finance. According to Registrar of Companies filings, Trillion Loans Fintech recorded a profit of INR 74 lakhs in the financial year 2021-22 (FY22) with INR 7 Cr in revenue.
BharatPe’s acquisition of a majority stake in NBFC Trillion Loans Fintech is expected to give the Delhi-based fintech startup an easier path to offer loans and credit facilities. After being rejected by RBI for the NBFC licence in 2019, BharatPe secured a licence for a small finance bank in June 2021 and launched Unity Small Finance Bank in a joint venture with Centrum Financial Services. The acquisition of Trillion Loans Fintech will enable BharatPe to scale its offerings and bypass dependence on specific NBFCs. Additionally, Trillion Loans Fintech’s founders also launched P2P lending platform Liquiloans, which has a long-standing relationship with BharatPe.
Since then, BharatPe’s journey has been tumultuous, marked by a public battle with its former managing director Ashneer Grover and allegations of fund misappropriation. The company and Grover have filed court cases against each other seeking damages, and BharatPe has also filed a criminal complaint against Grover and his family with the Economic Offences Wing (EoW) on various charges.
Despite these challenges, BharatPe has prominent investors such as Sequoia Capital and Ribbit Capital and was valued at $2.8 billion in its last funding round. The company has recently acquired a majority stake in Trillion Loans Fintech, which will enable it to make inroads into the lending space and scale its offerings on its own terms.
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