BharatPe turns Ebitda positive, plans to up stake in Trillion Loans to 100% over 3 years

Representative image

Peak XV Partners-backed BharatPe has sharply cut losses and turned Ebitda positive in the first nine months of the ongoing fiscal year (FY25), marking a financial turnaround as it doubles down on its lending business through NBFC subsidiary Trillion Loans.

The fintech firm’s net loss for the first nine months of FY25 stood at Rs 148.8 crore, against Rs 492 crore in the year-ago period, according to its provisional consolidated financials by India Rating and Research. The company also reported an Ebitda breakeven, turning positive for the first time when excluding ESOP expenses.

It had reported a revenue of Rs 1,426 crore for FY24.

BharatPe CEO Nalin Negi, in an earlier interview with Moneycontrol, had indicated that the company was on track to achieve full-year EBITDA profitability in FY25.

"FY24 was good. FY25 should be far better. We became EBITDA profitable for the first time in October last year (Q3FY25). It was a landmark year for us. Since then, we've been working harder to increase our revenue and improve our cost efficiency. We're on track to achieve full-year Ebitda profitability in 2025," Negi has said.

Also read: We are ‘resilient’ in every sense, plan to take BharatPe public in next 18-24 months: CEO

The Tiger Global-backed fintech firm earns revenue primarily through setup and processing fees, rental charges, and service fees for facilitating loans.

It also generates income from loyalty points through its subsidiary operating under the brand name Zillion.

Trillion Loans: Capital infusion, higher stake

A key factor driving BharatPe’s improved performance is the rapid growth of its lending business, primarily focused on unsecured merchant loans.

The fintech firm has been increasing its stake in Trillion Loans, which stood at 62.26 percent in January. NDX Financial Services holds the remaining 37.74 percent.

BharatPe plans to raise its stake in Trillion Loans to 100 percent over the next three years, subject to regulatory approval, India Ratings said.

Through its lending service provider (LSP) entity BharatPe Money, the fintech assesses merchant cash flows via QR transactions and other parameters before referring eligible leads to Trillion Loans, which also operates co-lending partnerships.

Leveraging BharatPe’s extensive merchant network of more than 1.5 crore businesses, Trillion Loans has grown into a critical revenue driver.

As of December 2024, BharatPe contributed around 76 percent to Trillion Loans’ assets under management (AUM). The rest came from other lending service providers (LSPs) such as Ninjacart, GetVantage, Gokwik, Velocity and  Credflow.

The company has infused approximately Rs 280 crore into the NBFC, including Rs 48.4 crore in January.

Trillion Loans' AUM growth

Trillion Loans’ AUM have nearly doubled over the past two years, reaching Rs 1,154.5 crore in the first nine months of FY25 against Rs 869.5 crore in FY24. The number of active merchant borrowers had surged to 2 lakh by February 2025, up from 66,000 in March 2023.

The NBFC, focused on merchant loans, revenue-based financing, term loans, reported a profit of Rs 29.7 crore in the first nine months of FY25, following a full-year profit of Rs 36.5 crore in FY24, a turnaround from the Rs 15.3 crore loss in FY23.

It achieved a return on assets of 3.2 percent and a return on equity of 13.64 percent.

According to the credit rating firm, BharatPe could raise additional funds through a new equity round by reducing its stake in Unity Small Finance Bank or by pursuing an initial public offering (IPO).

"As the parent company, we'll infuse equity into it (Trillion Loans) whenever required. For BharatPe, we're financially strong, good with liquidity and Ebitda positive," NEgi had told Moneycontrol .

“The next milestone for us would be an IPO, and it is something that we are seriously debating and internalising. If an investor wants to join us during this process, we're open to it, but we are not specifically going out into the market.”

Other investors of BharatPe include Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management, Dragoneer Investment Group, Steadfast Capital and Stead view Capital.