BharatPe Reports 3.4x Increase in Net Losses for FY22, Despite Strong Revenue Growth

BharatPe, a fintech unicorn founded by Ashneer Grover and Suhail Sameer, has reported a significant increase in net losses for the fiscal year 2022 (FY22). According to the company's financial statements, the net losses for FY22 were 3.4 times higher than the previous year, rising from Rs 1,619 crore to Rs 5,611 crore. The main reason cited for this increase was a change in the fair value of Compulsory Convertible Preference Shares (CCPS) amounting to Rs 4,782 crore.

In addition to the increase in net losses, the company's total expenditure also saw a significant increase of 3.47 times to Rs 6,264.9 crore on a consolidated basis in FY22. This increase was largely driven by the change in the fair value of CCPS and other expenses, which amounted to Rs 1,098.05 crore. Employee benefits expenses also more than doubled to Rs 166.9 crores for FY22, compared to Rs 75.41 crore in FY21.

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Despite these losses, BharatPe reported revenue from operations of Rs 456.08 crore on a consolidated basis and Rs 320.7 crore on a standalone basis for FY22. The company's fintech services continue to be in high demand, with a growing number of small businesses and merchants turning to BharatPe for their financial needs.

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While BharatPe has seen an increase in net losses and total expenditure in FY22, the company's revenue from operations remains strong. The change in the fair value of CCPS was the main contributor to the increase in losses. However, the company's fintech services continue to be in high demand and the company is well-positioned for future growth.