Tiger’s next target is payment aggregator and processor BharatPe — with the startup’s Series E round getting a $250 million check, at a $2.5 billion valuation.
For those unaware, BharatPe helps mainstreet merchants accept digital payments via QR codes, digital wallets, and other channels. At the same time, the startup uses vendors’ “revenue history” to better understand income potential and offer customized lending products to merchants, trying to fill gaps left by traditional banks.
6 million merchants use the platform, with 50K+ POS machines deployed, and transaction volumes topping $1.5 billion annually. Lending business apparently grew 10x in 2020.
Big picture — RBI just okayed BharatPe and Centrum Financial’s joint takeover of the asset-rotten and capsized PMC bank, which could allow BharatPe to accelerate the deployment of licensed and regulated banking products, which is what we believe drove Tiger to pull the trigger here. Otherwise, valuing the company at 1.6x its annual payments volumes? Come on.