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BharatPe ‘failed fintech’ it has no business left: Ashneer Grover with stats

BharatPe, the Indian fintech company, has been making headlines lately, with its former CEO Ashneer Grover claiming that the company has “no business left” and has failed to meet its growth targets. However, many experts and analysts have come to the defense of Grover, citing the company’s impressive growth and market penetration in a short period of time. In this blog post, we’ll take a closer look at the controversy surrounding BharatPe, examine the stats in favor of Ashneer Grover, and explore what this could mean for the future of the company and the fintech industry in India.

BharatPe, the Indian fintech company

Financial Losses

BharatPe has been incurring significant financial losses over the past few years. In FY20, the company reported a loss of INR 80.6 crore ($10.8 million), up from a loss of INR 44.6 crore ($6 million) in the previous year. These losses have been attributed to the high costs of acquiring new customers and expanding the company’s operations.

Slow Growth

While BharatPe has seen some growth in terms of its merchant base, the rate of growth has been slow compared to other players in the market. In February 2021, BharatPe had over 6 million merchants on its platform, while its competitor, PhonePe, had over 11 million merchants. This slow growth has been a cause of concern for investors and analysts.

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Limited Revenue Streams

BharatPe has been largely dependent on its payments business for revenue, which has limited its growth potential. While the company has diversified its revenue streams by offering financial services such as loans and insurance, these services are still in their early stages and are not generating significant revenue.

Management Changes

BharatPe has seen multiple changes in its management team in recent months, which has raised concerns about the company’s stability. In addition to Ashneer Grover stepping down as CEO, the company has also seen the exit of other key executives, including the CFO and the CTO.

Intense Competition

The Indian fintech market is highly competitive, with multiple players vying for a share of the market. BharatPe faces stiff competition from established players such as PhonePe and Paytm, as well as new entrants like Google Pay and WhatsApp Pay. This intense competition has made it difficult for BharatPe to gain market share and generate sustainable revenue.

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In conclusion, while there is no denying that BharatPe has faced some challenges in recent months, it would be premature to label it a “failed fintech” without considering its impressive growth and market penetration in a short period of time. The company’s former CEO, Ashneer Grover, has been an instrumental figure in its success, and it remains to be seen how the company will fare under new leadership. With the fintech industry in India continuing to grow rapidly, BharatPe will undoubtedly face stiff competition, but if it can adapt to the changing landscape and continue to innovate, there is every reason to believe that it will remain a key player in the industry for years to come.

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