BharatPe Payments Private Limited

Company Overview and Background in India

BharatPe Payments Private Limited, established in 2018 by Ashneer Grover and Shashvat Nakrani, has swiftly become a significant entity in India's financial technology sector. Headquartered in Gurugram, Haryana, this privately held company operates through several subsidiaries, notably Trillion Loans Fintech Private Limited, its Non-Banking Financial Company arm, and Resilient Payments Private Limited, which holds an online Payment Aggregator license. The company also maintains a strategic stake in Unity Small Finance Bank, reinforcing its integrated approach to financial services.

BharatPe's business model centers on offering zero merchant discount rate (MDR) payment acceptance solutions through interoperable Unified Payments Interface (UPI) QR codes and point-of-sale machines. This core offering is seamlessly integrated with a robust suite of credit products, delivered both through its own lending arm and strategic partnerships with other financial institutions. The primary target market includes small merchants, local grocery stores (often referred to as kirana stores), and Micro, Small, and Medium Enterprises (MSMEs) spanning tier one to tier three cities across India. This focus highlights the company's commitment to financial inclusion for underserved business segments.

The company has attracted substantial investment, raising over US $583 million from renowned investors such as Peak XV Partners, Tiger Global, Coatue, Ribbit Capital, and Insight Partners. Leadership includes Nalin Negi as Chief Executive Officer, appointed in April 2024, and Co-founder Shashvat Nakrani as a Board Member, guiding the company's strategic direction and growth in the competitive Indian fintech landscape.

Loan Products and Services Offered

BharatPe Payments Private Limited, through its own NBFC and various partnerships, offers a diversified portfolio of lending products tailored to the varying needs of its merchant base. These products are designed to provide accessible capital for business growth and personal asset acquisition.

Unsecured Business Loans

• Range: These loans are available from 10,000 Indian Rupees (approximately US $120) up to 15 lakh Indian Rupees (approximately US $18,000).
• Tenure: Repayment periods typically range from 12 to 36 months.
• Interest Rates: Monthly interest rates are between 1.5% and 3%, translating to an effective Annual Percentage Rate (APR) of approximately 18% to 36%.
• Fees: A processing fee of 1% to 3% applies. Late payments incur a fee of about 2% per month.
• Collateral: No collateral is required, making these loans accessible to a broader range of small businesses.

Secured Two-Wheeler Loans

• Range: Offered in partnership with OTO Capital, these loans vary from 25,000 Indian Rupees (approximately US $300) to 2.5 lakh Indian Rupees (approximately US $3,000).
• Tenure: Repayment can be stretched over 12 to 48 months.
• Interest Rates: Annual interest rates are competitive, ranging from 10% to 14%.
• Collateral: The vehicle documents are pledged as collateral, and an origination fee of up to 2% is typically charged.

Loans Against Mutual Funds (LAMF)

• Range: In collaboration with Volt Money, individuals can avail loans from 1 lakh Indian Rupees (approximately US $1,200) up to 1 crore Indian Rupees (approximately US $120,000).
• Tenure: These loans come with flexible tenures of 6 to 24 months.
• Interest Rates: Annual interest rates are between 9% and 12%.
• Collateral: Mutual fund units serve as collateral, and a 1% origination fee is applicable.

Gold Loans

• Range: Provided through NBFC partners, gold loans can be secured for amounts up to 20 lakh Indian Rupees (approximately US $24,000).
• Tenure: Repayment periods are typically shorter, from 3 to 12 months.
• Interest Rates: Annual interest rates range from 7% to 11%.
• Collateral: Gold ornaments are pledged, and a processing fee of approximately 1.5% is charged.

Application Process, Mobile App Features, and User Experience

BharatPe has designed its loan application process to be entirely digital, emphasizing speed and convenience for its merchant base. Potential borrowers can apply through the BharatPe mobile application, available on both iOS and Android platforms, or via its responsive website.

Application Process and Requirements

• Customer Onboarding: The entire process, from application submission to approval, is digital. This involves Aadhaar-based electronic Know Your Customer (e-KYC) verification and uploading essential documents such as a Permanent Account Number (PAN) card and proof of business.
• Underwriting and Credit Scoring: BharatPe employs a proprietary credit model that leverages a combination of data points. This includes a merchant's UPI transaction volume processed through BharatPe, Goods and Services Tax (GST) filings, and traditional credit bureau scores like CIBIL. This holistic approach allows for instant credit decisions and risk-based pricing, where interest rates are dynamically adjusted based on the applicant's credit profile.
• Disbursement and Collections: Upon approval, funds are swiftly disbursed directly to the merchant's linked bank account. Repayment is facilitated through various convenient methods, including auto-debit from a linked account, UPI collect features, or daily/weekly installments via QR-scan. For overdue accounts, the company employs automated reminders, field agents for follow-up, and, in cases of persistent default, legal escalation.

Mobile App Features and User Experience

The BharatPe mobile application is central to its ecosystem, offering a comprehensive suite of features beyond just loan applications:

• One-Click UPI Payments: The app enables seamless UPI payment acceptance and transfers, a core functionality for merchants.
• Loan Management Dashboard: Borrowers can view their loan details, repayment schedules, and transaction history directly within the app.
• Loyalty Program: The "Zillion Rewards" program integrates loyalty points, enhancing merchant engagement.
• User Reviews: The app generally receives positive ratings, averaging 4.2 on the Google Play Store and 4.3 on the Apple App Store. Users frequently praise the ease of payment transactions and the speed of loan disbursal.
• Common Issues: Despite overall positive feedback, some users have reported occasional issues. These include disputes related to late payment fees, glitches during in-app KYC processes, and delayed disbursals, particularly during periods of system scaling. Customer support response times are also an area where some users suggest improvement.

Regulatory Landscape, Market Position, and Competitor Comparison

BharatPe operates within a structured regulatory framework in India, which underpins its market position and expansion strategies.

Regulatory Status and Licensing

BharatPe maintains a robust regulatory standing through its various entities:

• NBFC Registration: Its subsidiary, Trillion Loans, is a registered Non-Banking Financial Company, enabling it to directly engage in lending activities.
• Payment Aggregator License: Resilient Payments Private Limited received an online Payment Aggregator license from the Reserve Bank of India (RBI) in April 2025, solidifying its payment processing capabilities.
• Unity Small Finance Bank Stake: BharatPe holds a stake in Unity Small Finance Bank, which is subject to the regulatory oversight of small finance banks.
• Compliance and Inquiries: The company cooperates with regulatory bodies, as demonstrated by its response to an inquiry notice under Section 206 of the Companies Act from the Ministry of Corporate Affairs (MCA) in 2024. BharatPe has maintained compliance with RBI guidelines and MSME lending regulations, without major penalties reported.
• Consumer Protection: Adherence to consumer protection norms is evident through transparent fee disclosures in loan agreements, mandatory pre-sanction disclosures, and a clear grievance redressal mechanism accessible via the RBI’s SCORES portal. Data privacy is also managed in accordance with the Information Technology Act and RBI data storage norms.

Market Position and Competitive Landscape

BharatPe has carved out a significant niche in the Indian fintech market, serving over 1.3 crore merchants across more than 450 cities. Its integrated payments and lending stack differentiates it in a crowded market.

• Market Share and Growth: The company processes over 450 million UPI transactions monthly, equating to an annualized transaction value of approximately 1.7 lakh crore Indian Rupees. Its lending vertical has disbursed over 18,000 crore Indian Rupees through NBFC alliances, reporting an impressive 129% year-on-year loan growth for merchant lending in FY23.
• Differentiation: BharatPe's unique selling proposition lies in its combination of zero Merchant Discount Rate (MDR) payments, a comprehensive payment and lending ecosystem, and integrated loyalty programs.
• Competitive Landscape: Key competitors in the Indian digital payments and lending space include established players like Paytm, PhonePe, Razorpay, and MobiKwik. While these platforms also offer payment and some lending services, BharatPe's strong focus on small merchants with its integrated suite positions it as a formidable player dedicated to this segment.
• Partnerships: Strategic collaborations with lenders such as OTO Capital and Volt Money, alongside multiple NBFCs for unsecured loans, and various acquiring banks for settlement, bolster its operational capabilities and product reach.

Practical Advice for Potential Borrowers

For individuals and small business owners in India considering BharatPe Payments Private Limited for their financial needs, several practical considerations are paramount to ensure an informed decision.

1. Understand the Loan Terms Thoroughly: Before applying, carefully review the interest rates, processing fees, late payment charges, and repayment tenure for the specific loan product you are interested in. BharatPe's unsecured business loans, for instance, carry a monthly interest rate of 1.5% to 3% (18% to 36% APR), which can be higher than traditional bank loans. Ensure these rates align with your repayment capacity.
2. Evaluate Collateral Requirements: For secured loans like two-wheeler loans, loans against mutual funds, or gold loans, understand the collateral requirements and the potential implications of pledging assets. While these loans often come with lower interest rates (e.g., 7-14% p.a.), the risk of asset forfeiture in case of default is present.
3. Review Eligibility Criteria: BharatPe leverages internal transaction data and credit bureau scores for underwriting. Consistent UPI transaction volume through BharatPe, a good CIBIL score, and proper GST filings can enhance your chances of approval and potentially secure better rates for unsecured loans. Ensure all necessary documents like Aadhaar, PAN, and business proof are ready for digital submission.
4. Assess Repayment Flexibility: The company offers various repayment options including auto-debit and daily/weekly installments. Choose a repayment schedule that aligns with your business's cash flow to avoid late payment penalties, which can be as high as 2% per month.
5. Consider Mobile App Experience: The BharatPe app is central to managing loans and payments. While generally praised for ease of use and quick disbursals, be aware of reported occasional glitches in KYC or disbursal delays. Familiarize yourself with the app's features, including the loan management dashboard, to ensure a smooth experience.
6. Compare with Alternatives: While BharatPe offers an integrated solution, it is always wise to compare its loan products, interest rates, and fees with other providers, including traditional banks and other fintech players like Paytm, PhonePe, or MobiKwik, to find the most suitable and cost-effective option for your specific requirements.
7. Address Customer Support Concerns: Some customer reviews mention occasional delays in customer support. Factor this into your decision, especially if you anticipate needing frequent assistance or clarification during your loan tenure.

BharatPe Payments Private Limited provides valuable financial access to India's vast merchant ecosystem. By understanding its offerings and carefully assessing personal financial situations, potential borrowers can effectively leverage its digital lending solutions for growth and stability.