Fintech firm BharatPe, soon to become a unicorn, raised Rs 50 crore from Northern Arc Capital, one of India’s leading digital debt financing platforms focused on improving access to finance for businesses and underserved individuals in India.
This is the sixth round of debt financing for BharatPe in 2021. By January of this year, the company had raised Rs 200 crore from the country’s three major debt companies. These included Alteria Capital, InnoVen Capital and Trifecta Capital, which then raised additional capital from ICICI Bank and Axis Bank.
Suhail Sameer, group chairman, BharatPe, said the company is committed to closing the credit gap for SMEs and small traders in the country. The company has significantly increased its lending activities over the past year.
“We have set an ambitious target of facilitating disbursements to the tune of $ 1 billion to over 10 lakh (one million) merchants by the end of the current fiscal year (FY22),” Sameer said. “We are delighted with our latest Northern Arc capital increase and are confident that together we will be able to transform Bharat and meet the needs of underserved businesses in India. “
In February, BharatPe raised $ 108 million in a Series D funding round, for a valuation of $ 900 million.
Through the pandemic in 2020 and 2021, BharatPe continued to support the credit requirements of its merchant partners. It has become one of the largest B2B fintech lenders in the country. It has already facilitated disbursements of over Rs 1,600 crore to over 200,000 traders since the launch of the lending vertical. BharatPe said it now aims to disburse Rs 14,000 crore in business loans by March 2023.
As BharatPe aggressively builds this vertical and rolls out products in the secured lending space, Sameer said the company will continue to partner with institutional debt providers. It would help empower millions of small traders in India.
Northern Arc chief operating officer Bama Balakrishnan said he is continually working on providing credit to like-minded organizations, such as BharatPe, which provide financial access to small businesses and traders. “This transaction demonstrates Northern Arc’s commitment to meeting the credit requirements of the underbanked segments of the country,” said Balakrishnan.