Coatue in talks to lead $100M round in BharatPe, Technology News, ETtech

Illustration: Rahul Awasthi
Illustration: Rahul Awasthi

New York-based hedge fund Coatue Management is in talks with BharatPe to lead a $75-$100 million funding round, in accordance to three individuals conversant in the event.

The funding is anticipated to nearly double BharatPe’s valuation to $500 million, sources in the know instructed ET.

Existing traders similar to Ribbit Capital, Insight Partners and Steadview Capital may even take part in the newest round, which comes roughly six months after the QR-code based mostly funds app for offline retailers closed a $50 million funding.

“There is high appetite among global investors to tap businesses that focus on digitizing small shop owners and creating a layer of financial inclusivity,” mentioned an investor immediately conscious of the deal. “As long as retention numbers remain high, there is potential to build a very large financial services play.”

Coatue, which manages greater than $15 billion in belongings, didn’t reply to ET’s e mail in search of affirmation of the funding.

The financing comes at a time when massive fintech corporations like PhonePe, Paytm, Amazon Pay, and Google Pay are shifting in the direction of tapping a big offline service provider base and enabling them with funds and different value-added providers.

“We are the fourth largest UPI player in the country despite not being on the consumer side of the business. This is significant considering Paytm, Google and Walmart have each put billions of dollars while we haven’t even invested $30 million to get where we are,” mentioned Ashneer Grover, CEO of BharatPe in a current interplay with ET. He didn’t, nonetheless, reply to an e mail on the newest funding.

BharatPe helps retailers settle for funds from any Unified Payments Interface (UPI) app without spending a dime.

The firm has began lending working capital in partnership with banks. It has additionally utilized for an NBFC license to begin lending from its personal books, sources mentioned.

The authorities waived off MDR (service provider low cost price) for retailers on digital funds made by means of RuPay debit playing cards and UPI units from January. The MDR is the speed charged to a service provider for cost processing providers on debit and bank card transactions. The MDR price waiver is probably going to speed up the adoption of companies like BharatPe in the offline service provider community.

“We started with payments, launched lending business and now we also have a deposit product, giving high interests back in the tune of 12%,” Grover mentioned.

Pine Labs, which just lately raised capital from MasterCard, launched its Paper POS, an all-in-one answer for accepting a number of types of funds by means of a single merged static QR on the level of sale on Wednesday.

Earlier this month, Paytm launched an identical all-in-one QR product to assist retailers settle for limitless funds by means of Paytm Wallet, RuPay Cards and all UPI-based cost apps immediately into their checking account at zero expenses.

(With inputs from Ashwin Manikandan)

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