BharatPe’s FY22 Losses Increased Due to Alteration in Fair Value of Compulsory Convertible Preference Shares
- ByStartupStory | January 27, 2023
Bharatpe, a fintech platform suffered huge losses to the tune of ₹5,610.7 crore in the financial year 2021-22, due to a one-time non-cash expense related to change in fair value of compulsory convertible preference shares (CCPS).
In FY21, the company had posted a net loss of ₹1,619.2 crore. Apart from the CCPS cost, the company’s adjusted loss grew 2.2 times to ₹828.2 crore in FY22, from ₹227.3 crore in the earlier fiscal year, according to its financial statement with the Registrar of Company (RoC).
Previously, the company clarified that the CCPS-related item is a “one-off and shall not be there from next year as we have now reclassified the compulsorily convertible preference shares from liability to equity”.
Meanwhile, its revenue from operations went up 3.8 times to ₹456.8 crore from ₹119 crore in FY21, owing to a surge in payments volumes on loan disbursals.The IPO-bound fintech platform announced three key appointments, along with hiring Ambuj Bhalla as its Chief Information Security Officer (CISO), as it fights a legal battle with former Co-founder Ashneer Grover in the Delhi High Court.
Founded in 2018, BharatPe is currently serving 1 crore merchants across more than 400 cities.
The company is a leader in UPI offline transactions, processing over 18 crore UPI transactions per month (with an annualized transaction processed value of over $24 billion in payments).
The company has facilitated the disbursement of loans close to ₹8,500 crore to over 450,000 merchants.
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