In early 2024, when listed fintech giants and unlisted startups were shaken by RBI’s crackdown on unsecured lending, BharatPe went into “silent mode”.

On Friday, the company announced its FY25 results, claiming profitability on an adjusted basis. It reported INR 6 Cr in profit before tax and excluding ESOP expenses from a net loss of INR 342 Cr in FY24. Curiously, revenue grew to INR 1,667 Cr in FY25 from INR 1,426 Cr in FY24, so the big push towards profitability has come on the back of efficiency.

While Paytm saw a decline in its financial services revenue in FY25 by 15%, BharatPe’s financial services revenue grew by 10% YOY.

The other listed competitor, Mobikwik reported a 4% growth in financial services revenue on a QoQ basis in Q1 FY26 at INR 58.3 Cr. So what is BharatPe doing right?

CEO Nalin Negi however places the credit on the merchant lending segment, which is not only driving growth for BharatPe but even that of the competitors. At 60% of overall revenues, financial services (primarily merchant lending) brought in nearly INR 1,000 Cr for BharatPe. Nearest rival Paytm which operates on a much bigger customer base reported INR 1,703 Cr revenue in FY25 comprising both merchant and personal loans.

“Unlike in the past few years, we digital lending companies now operate under a much clearer regulatory lens that only builds confidence in the industry. We have been constantly working on our lending business, onboarded 5 more NBFCs this year even if the overall industry climate was gloomy,” Negi told Inc42.

The twin engines of having its own NBFC, Trillion Loans which accounts for 25-30% of overall loan disbursals and a stake in Unity Small Finance Bank has started to bear dividends for BharatPe leading to growth in its core business.

Breaking down the math behind reaching near breakeven, Negi added “One thing we held onto is to not let the credit disbursal costs even as our scale grew in terms of topline and merchants base.”

BharatPe’s Merchant Lending Drive

Negi continues to be bullish about the merchant lending business despite the intense competition in this segment, as well as the roving eye........

© Inc42