Fintech unicorn BharatPe’s revenues jumped 169 per cent from Rs 119 crore in FY21 to Rs 321 crore in FY22. However, it also saw its losses widen to Rs 5,594 crore. The company shared that the loss is due to a change in fair value of compulsory convertible preference shares.
In a statement, BharatPe wrote, “While our total loss for FY22 is Rs 5,594 crore, it includes an extraordinary item pertaining to loss in change in fair value of compulsory convertible preference shares amounting to Rs 4,782 crore. This is not an operating loss but only a change in the fair value (PY Rs 1,342 crore). Excluding this, operating loss is Rs 811 crore (PY Rs 277 crore).” PY refers to the previous year.
The company added that this item is “one-off” and shall not be there from next year as it has reclassified the compulsory convertible preference shares into equity from liability, previously.
BharatPe also shared that it will continue to invest in new business verticals including PostPe and Swipe, both of which were started about a year ago. The company also revealed that the monthly disbursal rate is at around Rs 1,200 crore across all the products.
“We facilitated disbursals of around Rs 4,500 crore in 2021-22 and are on track to do Rs 15,000 crore across the merchant and consumer side this year and remain on track to be operationally positive in the next few months,” the statement read.
These numbers come against the backdrop of a major rejig happening within the leadership at BharatPe. Its CEO, Suhail Sameer, who has been overlooking the company’s operations ever since co-founder Ashneer Grover was ousted last year, is all set to step down, the company announced yesterday. Sameer will be taking over the position of Chief Strategy Officer and the company’s CFO, Nalin Negi will be stepping in as the interim CEO.
These changes will be effective from January 7, 2023.
The announcements were made on December 31 when the fintech major’s annual general meeting (AGM) took place. Several media reports also surfaced suggesting that Grover and his wife, Madhuri Jain Grover too joined the AGM with a “clear intent to disrupt the proceedings,”
It is also important to note that last month, BharatPe filed a civil case at the Delhi High Court and a criminal complaint with the Economic Offenses Wing against Grover and his family members for misappropriation of funds, among other claims. The fintech company also filed an arbitration under the Singapore International Arbitration Centre (SIAC) rules to restrict him from vesting his 1.4 per cent shares in the company.
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