Delhi-based fintech unicorn BharatPe has executed its first secondary share transaction since 2021, at its last private valuation of $2.85 billion. The deal, done through wealth-tech platform Wylth, involves Gujarat-based family offices acquiring part of BharatPe’s common equity. This move comes as BharatPe works to strengthen corporate governance after earlier internal controversies, while also preparing for an eventual IPO.
What’s the Deal
- As part of the transaction, Gujarat family offices bought 2.6% from a 27% common equity pool that was valued in BharatPe’s last private valuation.
- The valuation reference comes from BharatPe’s Series E round, wherein the company was valued at $2.85 billion.
- The deal was carried out via Wylth, a wealth-tech platform.
Background & Context
- BharatPe had last raised large external capital in 2021, when it closed a $370 million Series E round, led by Tiger Global, at the same $2.85B valuation.
- That prior round included both primary investment (new capital for the business) and a secondary component to provide liquidity to employees/early stakeholders.
Why This Secondary Deal Matters
- Liquidity for Early Investors & ESOP Holders
The secondary transaction allows existing shareholders — including employees with vested options — to convert some of their equity into cash, without waiting for an IPO. - Governance & Stability Signal
BharatPe has faced internal governance challenges in recent years. This deal sends a signal that it’s moving toward more transparency, stabilized leadership, and readiness for public markets. - Valuation Validation
Using the $2.85B valuation from 2021 suggests that the company and its investors believe market conditions and business performance still support that value (or see it as a meaningful benchmark). - Stepping Stone to IPO
BharatPe is reportedly preparing for a pre-IPO round (some reports suggest $80-100 million) to further build up finances, governance, and performance metrics ahead of a listing. This secondary deal is consistent with prepping the cap table and providing confidence to future investors.
Risks & Things to Watch
- The size of the secondary transaction has not been publicly disclosed.
- A secondary deal doesn’t bring new capital into the company’s operations — its benefit is mainly to shareholders seeking liquidity. Operational funding still needs to come from elsewhere (primary rounds or revenue).
- Market conditions (macro-economic, regulatory, fintech competition) can impact BharatPe’s growth, valuation, and the success of its IPO plans.
Conclusion
BharatPe’s first secondary deal since 2021 at a $2.85B valuation is an important development. It provides liquidity for shareholders, reinforces confidence among stakeholders, and helps pave the way toward an IPO. While it doesn’t change the company’s fundamental finances, it underscores how BharatPe is navigating governance, valuation, and market expectations as it aims for its next growth phase.
